At the Beginning of 2014, Wallace Corporation Issued 10% Bonds

question 133

Multiple Choice

At the beginning of 2014, Wallace Corporation issued 10% bonds with a face value of $3,000,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2,779,200 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (Round your answer to the nearest dollar.)

• A) $344,160
• B) $334,510
• C) $333,500
• D) $332,500

---

Definitions:

Theories of Globalization

Diverse perspectives that analyze the processes, causes, and consequences of global integration and interconnections across economic, political, and cultural spheres.

Social Construction

The theory that much of the social world is created through collective human agreement and is culturally and historically specific rather than inherent.

Colonialism

Refers to the practice of acquiring full or partial political control over another country, occupying it with settlers, and exploiting it economically.

Biological Category

Classifications within biology that organize the vast diversity of life based on shared traits, genetic similarities, and evolutionary history, such as species, genus, and family.