On January 1,2019,French Company Issued $74,000 of Five-Year,8% Bonds When

question 166

Multiple Choice

On January 1,2019,French Company issued $74,000 of five-year,8% bonds when the market interest rate was 12%.The issue price of the bonds was $62,000.French uses the effective-interest method of amortization for bond discount.Semiannual interest payments are made on June 30 and December 31 of each year.How much interest expense will be recorded when the first interest payment is made? (Round your answer to the nearest dollar number.)

• A) $2480
• B) $3720
• C) $2960
• D) $4440

---

Definitions:

Cultural Leveling

The process whereby distinct cultural differences among societies or groups become less distinct, leading to a more homogeneous global culture.

Incipient Social Movement

An emerging collective effort aimed at social change that is in its early stages of development and not yet fully established or widely recognized.

Primitivism

An artistic or philosophical advocacy for a return to simple, non-industrial society ways or valorization of what are seen as the unspoiled and authentic practices of non-urbanized peoples.

Digital Divide

The unequal access to computer and Internet technology, both globally and within the United States.