Business, 18.12.2019 01:31 tahiyazaman1493
On january 2, 2014, a calendar-year corporation sold 8% bonds with a face value of $1,500,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,384,000 to yield 10%. using the effective-interest method of computing interest, how much should be charged to interest expense in 2014?
a. $138,400.
b. $138,860.
c. $150,000.
d. $120,000.
Answers: 3
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On january 2, 2014, a calendar-year corporation sold 8% bonds with a face value of $1,500,000. these...
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