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:

Profit Centers

Segments or divisions within a company that are directly responsible for generating a significant portion of the company's profits.

Division Profits

The earnings attributive to a specific division or branch of a larger company, often used to assess the performance of that segment.

Profit Centers

Profit centers are segments, branches, or divisions of a company that are treated as a separate business, responsible for generating their own revenues and profits.

Corporate Headquarters

The main office or center of operations for a business where significant managerial and administrative work is conducted.