On January 1, 2013, Kaiser Permanente Issued $2,000,000 of 8

question 52

Multiple Choice

On January 1, 2013, Kaiser Permanente issued $2,000,000 of 8% bonds at par. These bonds are due in 10 years with interest payable semi-annually on June 30 and December 31. What is the amount of the interest expense in 2013 assuming the use of the effective interest amortization method?

• A)$16,000
• B)$160,000
• C)$1,600,000
• D)$2,000,000

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Definitions:

Concentric

A type of muscle contraction where the muscle shortens while generating force, commonly occurring during the lifting phase of an exercise.

Interstitial

Pertaining to spaces within tissues or organs, outside of the blood vessels and cells.

Appositional

Pertaining to growth or deposition of new tissue layers on existing layers, as seen in bones and some tissues.

Oppositional

Characterized by a tendency to resist or challenge authority, guidelines, or established norms, often seen in certain behavioral disorders.