[The Following Information Applies to the Questions Displayed Below

question 100

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums.


-Assuming Wayne issued the bond for 102.5,what is the amount of interest expense that will be reported on the income statement for the year ending December 31,Year 1?

• A)$34,500
• B)$36,000
• C)$37,500
• D)$15,000

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Definitions:

Red

A color at the end of the visible spectrum of light, next to orange and opposite violet, with a dominant wavelength of approximately 620-740 nanometers.

Sensory Adaptation

The process in which sensory receptors grow accustomed to constant, unchanging levels of stimuli over time.

Sensory Fatigue

A condition where there is a temporary decrease in the sensitivity of a sense after prolonged exposure to a stimulus.

Sensory Abilities

The capabilities related to the reception and processing of sensory information from the environment by the sensory organs.