[The Following Information Applies to the Questions Displayed Below

question 85

Multiple Choice

[The following information applies to the questions displayed below.]

On January 1, Year 1, Victor Company issued bonds with a $250,000 face value, a stated rate of interest of 6%, and a 5-year term to maturity. The bonds sold at 95. Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premiums.

-What is the amount of interest expense appearing on the income statement for the year ending December 31,Year 3?

• A)$17,500
• B)$12,500
• C)$14,250
• D)$15,000

---

Definitions:

Gestation

The period of time during which an embryo develops inside the uterus of a female, from conception to birth.

Detect Sound

The process by which sound waves are identified and interpreted, typically by an organism's auditory system or through technological means.

Corpus Luteum

Hormone-secreting structure that forms from follicle cells left behind after ovulation.

Ruptured Follicle

The process during ovulation where the mature ovarian follicle tears open to release an egg into the fallopian tube.