Sparks Company Received Proceeds of $634,500 on 10-Year, 8% Bonds

question 115

Multiple Choice

Sparks Company received proceeds of $634,500 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $600,000, pay interest annually on December 31st, and have a call price of 102. Sparks uses the straight-line method of amortization. What is the amount of interest Sparks must pay the bondholders in 2016?

• A)$50,760
• B)$48,000
• C)$48,960
• D)$5,076

Identify the benefits and characteristics of various retirement plans and investment vehicles.

Recognize investment constraints and how they affect portfolio management.

Understand the concept of liquidity and its importance in investment decision-making.

Comprehend strategies for achieving investment objectives within specified risk tolerances and constraints.

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Definitions:

Indexing

The method of organizing data, literature, or information to facilitate easy retrieval, often seen in libraries, databases, and various information systems.

Misplace

is the act of putting something in the wrong place, resulting in temporary loss or forgetting where it is.

Patient Record

A detailed document containing a patient's medical history, treatment plans, and personal health information, maintained by healthcare providers.

Retrace

To follow back or go over something again, typically a path or a series of events.