On May 1, 2016, Plotter, Inc

question 42

Multiple Choice

On May 1, 2016, Plotter, Inc., issued $30,000 of ten-year, 12% bonds payable dated January 1, 2016. The cash received amounted to $29,808. The bonds pay interest semiannually. Potter's fiscal year ends on June 30, 2016. What amount of interest expense should be reported on the income statement prepared on June 30, 2016, assuming straight-line amortization?

• A) $603.20
• B) $669.60
• C) $549.60
• D) $609.60

---

Definitions:

Interval

A range of values between two points, often used in the context of time, temperature, or statistical data points.

Random Variable

A variable whose possible values are outcomes of a random phenomenon, often denoted in probability and statistics.

Uncountable Number

A type of set or quantity of mathematical entities that cannot be paired with the natural numbers, indicating an infinite quantity that is not countably infinite.

Random Variable

A numerical variable that reflects the outcomes of an unpredictable event.