A Company Issued 10-Year, 7% Bonds with a Par Value

question 73

Multiple Choice

A company issued 10-year, 7% bonds with a par value of $100,000. The company received $96,526 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:

• A) $7,347.40.
• B) $3,500.00.
• C) $3,673.70.
• D) $7,000.00.
• E) $3,326.00.

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Definitions:

Carbon Dioxide

Carbon dioxide is an invisible, scentless gas that results from the combustion of carbon and organic materials as well as the process of respiration. It occurs naturally in the atmosphere and is taken in by plants for the process of photosynthesis.

Respiratory Surfaces

The parts of organisms where gas exchange between the external environment and the internal tissues occurs, typically thin, moist, and highly vascularized for efficient diffusion of gases.

Moist

Slightly wet or damp, often used to describe environments or surfaces.

Choking

The blockage of the airway by a foreign object, leading to a severe reduction in breathing or inability to breathe.