Wildcat Corporation Issues $500,000, 10%, 5-Year Bonds on January 1

question 174

Multiple Choice

Wildcat Corporation issues $500,000, 10%, 5-year bonds on January 1, 2012 for $479,000. Interest is paid semiannually on January 1 and July 1. If Wildcat uses the straight-line method of amortization of bond discount, the amount of bond interest expense on July 1, 2012 is:

• A) $22,900.
• B) $25,000.
• C) $27,100.
• D) $52,100.

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Definitions:

Business Model

A strategic plan outlining how a company creates, delivers, and captures value, in economic, social, cultural, or other contexts.

Attract Customers

Strategies or practices aimed at drawing in potential clients or customers to a business or product.

Lowest Price

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Market Capitalization

The total value of a company's outstanding shares of stock, calculated by multiplying the current stock price by the total number of shares.