A Company Issued 5-Year,7% Bonds with a Par Value of $100,000.The

question 57

Multiple Choice

A company issued 5-year,7% bonds with a par value of $100,000.The market rate when the bonds were issued was 6.5%.The company received $102,105 cash for the bonds.Using the effective interest method,the amount of recorded interest expense for the first semiannual interest period is:

• A)$3,500.00.
• B)$7,000.00.
• C)$3,318.41.
• D)$6,573.90.
• E)$1,750.00.

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Definitions:

Reactions

The actions, emotions, or behaviors that are elicited in response to stimuli or events.

Norm Violation

Behaviors that go against the accepted standards or rules of a social group or society.

Actor

A person who performs in theatrical productions, movies, or television shows.

Deterrence Hypothesis

The view that the arrest and punishment of some individuals for violation of laws deters other persons from committing the same violations.