On January 1 of Year 1,Congo Express Airways Issued $3,500,000

question 51

Multiple Choice

On January 1 of Year 1,Congo Express Airways issued $3,500,000 of 7% bonds that pay interest semiannually on January 1 and July 1.The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%.The bond premium or discount is being amortized at a rate of $10,087 every six months. The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be:

• A)$132,500.
• B)$225,000.
• C)$265,174.
• D)$245,000.
• E)$224,826.

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Definitions:

Linear Inequalities

Mathematical statements that involve linear expressions and inequalities, showing that one side is either greater than, less than, greater than or equal to, or less than or equal to the other.

System

A group of guidelines or processes used to accomplish a task; a systematic strategy or technique.

Positive Exponents

Exponents that are positive numbers, indicating how many times the base is multiplied by itself.

Expression

A combination of symbols that represent a quantity or a relationship between quantities, often including variables and constants.