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

question 10

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 expenditure 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:

Conglomerate Mergers

Conglomerate mergers involve companies from unrelated industries combining, aiming for diversification to reduce risk.

Vertical

Pertaining to the organization of a supply chain where a company controls multiple stages of production or distribution.

Celler-Kefauver Act

A United States antitrust law passed in 1950, aimed at preventing anti-competitive mergers by closing a loophole related to asset acquisition.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting fair competition and preventing monopolies by restricting certain types of anti-competitive practices.