Sparks Company Received Proceeds of $423,000 on 10-Year, 8% Bonds

question 246

Multiple Choice

Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $400,000, pay interest annually on December 31st, and have a call price of 102. Sparks uses the straight-line method of amortization. What is the amount of interest expense Sparks will show with relation to these bonds for the year ended December 31, 2014?

• A) $32,000
• B) $33,840
• C) $29,700
• D) $25,100

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Definitions:

Brain Tissue Ablation

A surgical procedure or technique involving the removal or destruction of tissue within the brain, often used to treat neurological disorders or brain tumors.

Compensation

Following brain damage, the neuroplastic ability to modify behavior from that used prior to the damage.

Channelrhodopsin-2 (ChR2)

A light-sensitive protein derived from algae used in optogenetics to control the activity of neurons with light.

Halorhodopsin (NpHR)

A light-activated chloride pump used in optogenetics to inhibit neuronal activity by hyperpolarizing neurons when exposed to light.