On January 1,2010,Jacob Issues $800,000 of 9%,13-Year Bonds at a Price

question 64

Multiple Choice

On January 1,2010,Jacob issues $800,000 of 9%,13-year bonds at a price of 96½.Six years later,on January 1,2016,Jacob retires 20% of these bonds by buying them on the open market at 105½.All interest is accounted for and paid through December 31,2015,the day before the purchase.The straight-line method is used to amortize any bond discount. What is the total interest expense for the life of the bond?

• A)$936,000
• B)$964,000
• C)$936,000.
• D)$772,000
• E)$844,000

---

Definitions:

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart attacks, and heart failure.

Cigarette Smoking

The act of inhaling and exhaling the smoke from burning tobacco encased in cigarettes, a habit associated with health risks.

Alzheimer's Disease

A degenerative brain disease characterized by memory loss, cognitive decline, and personality changes, often associated with aging.