1Method of Amortization

question 19

Multiple Choice

1.method of amortization. Interest is paid each June 30 and December 31. The interest expense recognized for the first semiannual interest payment on December 31 is:

• A)$9,000.
• B)$75,000.
• C)$84,000.
• D)$180,000.

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Definitions:

Investments

Financial assets purchased with the aim of generating income or appreciation in value over time.

Providing Service

Providing service involves performing tasks or work for customers, often in exchange for payment, as part of a business's operations.

Additional Paid-in Capital

This refers to the amount of money investors have paid for shares above and beyond the par value of the shares, recorded in the equity section of the balance sheet.

Selling Assets

The act of disposing of physical or intangible property owned by a company for cash or other considerations.