Use the Following Information for Questions 46 Through 48

question 80

Multiple Choice

Use the following information for questions 46 through 48.
Chang Corporation issued $4,000,000 of 9%, ten-year convertible bonds on July 1, 2014 at 96.1 plus accrued interest. The bonds were dated April 1, 2014 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2015, $800,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion.
-If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1, 2014?

• A) $ 86,000.
• B) $ 90,000.
• C) $ 94,000.
• D) $180,000.

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Definitions:

Buffy Coat

The fraction of an anticoagulated blood sample that is composed of white blood cells and platelets, visible as a thin layer between the red blood cells and plasma in centrifuged blood.

Centrifuge Tube

A laboratory vessel specifically designed to withstand the forces generated during a centrifugation process, used for separating mixtures.

Platelets

Small blood cells involved in clotting, helping prevent bleeding by forming plugs in vessel injuries.

Percent Saturation

The ratio of the current amount of a substance to the total possible amount of that substance that could be held, absorbed, or dissolved by a solution.