On 1 January 2013, Diab Services Issued $140 000 of 4-

question 36

Multiple Choice

On 1 January 2013, Diab Services issued $140 000 of 4- year debentures with a stated rate of 9%. The market rate at time of issue was 8%, so the debentures were issued with a premium and sold for $144 758. Diab uses the effective- interest method to amortise debenture premium. Half- yearly interest payments are made on 30 June and 31 December of each year. How much interest expense will be recorded when the first interest payment is made?

• A)$6 300
• B)$1 050
• C)$5 790
• D)$11 200

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Definitions:

Dollar Diplomacy

A foreign policy strategy used by the United States to influence Latin American and East Asian countries through economic means rather than military coercion.

Progressive Presidents

Presidents who advocated for reforms to address inequities, corruption, and other societal problems during the Progressive Era in the early 20th century.

American Power

The influence and capability of the United States in terms of economic might, military strength, cultural impact, and political leadership on the global stage.

Foreign Policy

Foreign policy refers to a government's strategy in dealing with other nations, including its diplomacy, military actions, and economic relations.