On January 1, 2017, Chin Corporation Issued $2,600,000, 16%, 5-Year

question 16

Multiple Choice

On January 1, 2017, Chin Corporation issued $2,600,000, 16%, 5-year bonds. The bond interest is payable on January 1 and July 1. The bonds sold for $2,819,600. The market rate of interest for these bonds was 14%. Under the effective-interest method, what is the interest expense for the six months ending July 1, 2017?

• A)$182,000
• B)$225,568
• C)$197,372
• D)$208,000

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Definitions:

Systemic Discrimination

Discrimination that is ingrained in the policies, practices, and procedures of institutions, resulting in disadvantages to certain groups.

Natural Superiority

The belief in the inherent superiority of certain individuals, groups, or races over others, often without scientific basis.

Stereotype

A label that may have some basis in fact, but that has been grossly over-generalized and applied to a particular segment of the population or situation.

Overgeneralizations

Cognitive distortions where an individual applies a general rule too broadly, often leading to inaccurate conclusions or stereotypes.