On 1 January 2017,Carter Sales Issued $39,000 in Debentures for $20,700.They

question 63

Multiple Choice

On 1 January 2017,Carter Sales issued $39,000 in debentures for $20,700.They were six year debentures with a stated rate of 9% and pay semiannual interest.Carter Sales uses the straight-line method to amortise the Debentures discount.On 30 June 2017,when Carter makes the first payment to investors,how much will they report as Interest expense? (Round to the nearest dollar. )

• A)$1525
• B)$37,185
• C)$1755
• D)$3280

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Definitions:

Add

To attach or combine one thing with another to augment its size, quantity, or total.

UI

This term might refer to "User Interface," which is the means by which a user interacts with a computer, software, or application.

Assumption

A statement accepted as true without proof, often forming the basis of an argument or hypothesis.

MT

Modus Tollens, a form of logical argument or a rule of inference allowing one to deduce a conclusion from a hypothetical proposition and its denial.