On March 2,2016,20-Year,6 Percent,general Obligation Serial Bonds Were Issued at the Face

question 32

Multiple Choice

On March 2,2016,20-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 1,2017.Fiscal year-end occurs on December 31.What is the interest expense for the fiscal year ending December 31,2016?

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

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Definitions:

Balance of Trade

The difference in value between a country's imports and exports over a certain period, indicating the economic health of a nation.

Columbian Period

The era in history following the arrival of Christopher Columbus in the Americas in 1492, marking the beginning of widespread European exploration and colonization.

Trade

The exchange of goods and services between people or entities, often in exchange for money, which is a fundamental aspect of economic activity and interaction.

Pueblos

Indigenous communities in the Southwestern United States, known for their unique adobe and stone dwellings and rich cultural heritage.