Given the Following Information from an Amortization Table, Compute the Interest

question 5

Multiple Choice

Given the following information from an amortization table, compute the interest expense, discount amortization, and the carrying value for the next line of the table, rounding your answer to the nearest dollar:: $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } 6 \% \text { Cash } \\\text { Interest }\end{array} & \begin{array} { c } 7 \% \text { Effective } \\\text { Interest }\end{array} & \begin{array} { c } \text { Discount } \\\text { Amortization }\end{array} & \begin{array} { c } \text { Carrying } \\\text { Value }\end{array} \\\hline \$ 42,000 & \$ 47,340 & \$ 5340 & \$ 681,630 \\\hline\end{array}$$

• A) Interest Expense $47,340; Discount Amortization $5,340; Carrying Value $676,290
• B) Interest Expense $47,714; Discount Amortization $5,714; Carrying Value $687,344
• C) Interest Expense $47,714; Discount Amortization $5,340; Carrying Value $676,290
• D) Interest Expense $47,340; Discount Amortization $5,340; Carrying Value $681,630

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Definitions:

Amino Acid

Organic compounds that serve as the building blocks of proteins, containing both amino (-NH2) and carboxylic acid (-COOH) functional groups.

Polypeptide

A molecule consisting of a chain of amino acids linked by peptide bonds, and is the building block of proteins.

Amino Acid Sequences

The order in which amino acids are linked together by peptide bonds in a protein or peptide.

Enzyme

Biological catalysts which accelerate chemical reactions in living organisms by lowering the activation energy.