On March 2, 2019, 20-Year, 6 Percent, General Obligation Serial

question 21

Multiple Choice

On March 2, 2019, 20-year, 6 percent, general obligation serial bonds were issued at the face amount of $3,000,000. Interest of 6 percent per annum is due semiannually on March 1 and September 1. The first payment of $150,000 for redemption of principal is due on March 1, 2020. Fiscal year-end occurs on December 31. What is the interest expense for the fiscal year ending December 31, 2019?

• A) $90,000.
• B) $135,000.
• C) $150,000.
• D) None of the options are correct.

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Definitions:

Emancipated Minor

A person who is not legally an adult (18 years of age) and may not require parental permission for medical or surgical care.

Mature Minor

A legal concept recognizing that minors may possess the maturity to make certain medical decisions on their own behalf.

Informed Consent

A process by which a patient voluntarily confirms their willingness to participate in a particular medical treatment or experiment, after having been informed of all the risks, benefits, and alternatives.

Implied Consent

A form of consent which is not given directly by an individual but rather inferred from their actions or the facts and circumstances of a situation.