On April 1,2016,Transportation Imbalance Company (TIC)purchased $5,000 of 6% Bonds

question 18

Multiple Choice

On April 1,2016,Transportation Imbalance Company (TIC) purchased $5,000 of 6% bonds as a long-term investment to be held to maturity.TIC is a private corporation that elects to report its financial results in accordance with ASPE.Its year end is December 31 an Interest dates are April 1 and October 1.The bonds mature 36 months from the purchase date.The purchase price of the bonds was $5,120,and the premium is amortized on the straight-line basis.Assume the proper adjusting entry was made on December 31,2016,to record accrued interest receivable and amortization of the premium.The total interest revenue recorded by Transportation Imbalance Company on April 1,2017 will be:

• A) $150.00
• B) $72.50
• C) $75.00
• D) $65.00

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Definitions:

Elaborative Rehearsal

A technique in memory that involves thinking about the meaning of the term to be remembered, as opposed to repetitive rote memorization.

Learning List

A method or a tool used for memorization that involves enumerating or cataloguing information in a structured format.

Stored Memory

Information that has been retained over time and can be recalled or accessed from the brain.

Anterograde Amnesia

The loss of the ability to create new memories after the event that caused the amnesia, leading to a partial or complete inability to recall the recent past, while long-term memories from before the event remain intact.