On October 1, Alex Company Issued 8%, 10-Year, $400,000 Bonds

question 42

Multiple Choice

On October 1, Alex Company issued 8%, 10-year, $400,000 bonds at 108. Interest dates are April 1 and October 1. The amount of cash paid out for interest during the current calendar year is:

• A) $0.
• B) $32,000.
• C) $16,000.
• D) $8,000.

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Definitions:

Direct Labor Cost

The total cost of all labor hours worked directly on a specific job or project.