A Company Issued Five-Year,7% Bonds with a Par Value of $100,000.The

question 145

Multiple Choice

A company issued five-year,7% bonds with a par value of $100,000.The market rate when the bonds were issued was 6.5%.The company received $101,137 cash for the bonds.Using the straight-line method,the amount of recorded interest expense for the first semiannual interest period is:

• A)$3,386.30
• B)$3,500.00
• C)$3,613.70
• D)$6,633.70
• E)$7,000.00

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Definitions:

Insanity

A legal term describing a person's inability to understand the nature of their actions, not a specific clinical diagnosis.

Speed of Response

The rate at which an individual or system reacts to a specific stimulus or situation.

Predictions

Statements or forecasts about what will happen in the future based on analysis or observation.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.