On January 1, 2015, Carter Sales Issued $15,000 in Bonds

question 24

Multiple Choice

On January 1, 2015, Carter Sales issued $15,000 in bonds for $14,700. They were 6-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Discount. On June 30, 2015, when Carter makes the first payment to bondholders, how much will they report as Interest Expense?

• A)$675
• B)$700
• C)$25
• D)$825

---

Definitions:

Trial Balloons

Informal tests of public reaction to a proposal or idea, typically through leaks or unofficial announcements.

Original Plan

The initial strategy or set of intentions devised to achieve a particular goal or outcome.

Logic Skeleton

A framework outlining the basic structure or argument of a piece of reasoning or text.

Summary Abstracts

Concise summaries of documents or presentations that highlight the key points or findings.