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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