On January 1,2018,Ling Services Issued $168,000 of Six-Year,12% Bonds When

question 163

Multiple Choice

On January 1,2018,Ling Services issued $168,000 of six-year,12% bonds when the market interest rate was 11%.The issue price of the bonds was $177,110.Ling uses the effective-interest method to amortize the bond premium.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 the final answer to the nearest dollar.)

• A) $10,627
• B) $9741
• C) $10,080
• D) $9240

---

Definitions:

Expressing Emotions

The process of conveying one's feelings to others through words, actions, or artistic expressions.

Traits

Characteristic patterns of thought, emotion, and behavior that are relatively stable over time and across situations, distinguishing one individual from another.

Effective Leaders

Individuals who possess the skills, attributes, and behaviors necessary to guide teams or organizations towards achieving their goals.

Organizational Effectiveness

The degree to which an organization achieves its goals and objectives efficiently and effectively.