On January 1, 2017, Macie Company Purchased Jefferson Company's 9

question 115

Multiple Choice

On January 1, 2017, Macie Company purchased Jefferson Company's 9% bonds with a face amount of $200,000 for $213,420 to yield 8%. The bonds mature on January 1, 2027, and Macie has both the intent and ability to hold these bonds to maturity. The bonds pay interest annually on December 31. Assuming Macie uses the effective interest method of amortizing the bond premium; interest income reported on the income statement for the year ended December 31, 2017, would be

• A) $16,000.
• B) $17,074.
• C) $18,000.
• D) $18,926.

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Definitions:

Venture Capitalists

Professional group or individuals who invest in early-stage companies with high growth potential in exchange for equity, or ownership stake.

Venture Strategy

A comprehensive plan, including vision, goals, and tactics, designed to guide a startup or venture through its growth phases and market challenges.

Prospective Investors

Individuals or entities that are considering the possibility of investing in a business or project but have not yet committed to the investment.

Effective Business Plan

A detailed document that outlines a business's goals, strategies, target market, and financial forecasts.