Herman Company Received Proceeds of $565,500 on 10-Year, 8% Bonds

question 205

Multiple Choice

Herman Company received proceeds of $565,500 on 10-year, 8% bonds issued on January 1, 2012. The bonds had a face value of $600,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Herman uses the straight-line method of amortization. What is the amount of interest expense Herman will show with relation to these bonds for year ended December 31, 2014?

• A) $48,000
• B) $45,240
• C) $51,450
• D) $44,550

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Definitions:

Projective Personality Tests

Psychological assessments where individuals respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Rorschach Inkblots

An exam where participants' interpretations of inkblot images are documented and analyzed based on psychological theories.

Thematic Apperception Test

A projective psychological test in which subjects' perceptions of ambiguous images are used to uncover their underlying motives, feelings, and attitudes.

Rorschach Inkblot Test

A psychological test in which perceptions of inkblots are used to analyze a person's psychological state and personality characteristics.