A Company Issued Seven-Year,8% Bonds with a Par Value of $200,000.The

question 30

Multiple Choice

A company issued seven-year,8% bonds with a par value of $200,000.The market rate when the bonds were issued was 5.5%.The company received $203,010 cash for the bonds.Using the straight-line method,the amount of recorded interest expense for the first semiannual interest period is:

• A)$8,000
• B)$8,215
• C)$7,785
• D)$16,000
• E)$4,990

---

Definitions:

Tax Policy

Guidelines and laws governing how taxes are structured, collected, and managed by a government to influence economic activity.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford with their income level.

Prices

The price necessary to obtain a good, service, or piece of property.

Income

The money received by an individual or organization, typically measured on a regular basis, for work or through investments.