Franklin Corporation Issues $50,000, 10%, 5-Year Bonds on January 1

question 59

Multiple Choice

Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is

• A) $10,290
• B) $2,710
• C) $2,500
• D) $2,290

---

Definitions:

Equanimity

A mental or emotional stability or composure, especially under tension or strain; calmness.

Distributive And Redistributive Justice

A social justice model that is concerned with the fair distribution or redistribution of material and non-material resources between different groups within a society.

Institutionalized Justice

A form of justice system where legal decisions and the enforcement of laws are formally established by recognized government institutions or authorities.

Tokenism

The practice of making only a perfunctory or symbolic effort to be inclusive to members of minority groups, especially by recruiting a small number of people from underrepresented groups in order to give the appearance of racial or sexual equality within a workforce.