On january 1, 2021, lyle's limeade issues 3%, 20-year bonds with a face amount of $80,000 for $69,058, priced to yield 4%. interest is paid semiannually. what amount of interest expense will be recorded in the december 31, 2021, annual income statement?

The interest expense of $2,765.94 is recorded in the annual income statement.

Explanation:

As the interest is paid semiannually, so the first interest will be in June, it is computed by using the method of effective interest rate :

Interest expense = Amount × Rate / 2

=$69,058 × 0.04 / 2

= $1,381.16

Now, Computing the amount of the above interest expense that amortizes the bond discount as:

= Face value × issued at 3% / 2

= 80,000× 0.03 / 2

= $1,200

= $1,381.16 - $1,200

= $181.16

The difference is added to the carrying value of the bond which is:

= Difference amount + Carrying amount

= $181.16+ $69,058

= $69,239.16

The interest for 6 months ending on December 31 is computed as:

= $69,239.16 ×0.04 / 2

= $1,384.78

Total interest expense at 12/31/12 would be:

= June 30 expense + December 31 expense

= $1,381.16 + $1,384.78

= $2,765.94

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer; (10%) commission;