What Is the Interest Expense on the Bonds in 2010

question 111

Multiple Choice

What is the interest expense on the bonds in 2010?

• A)$700,700.
• B)$600,000.
• C)$351,337.
• D)$100,700.Semiannual effective rate = $345,639 / $8,640,967 = 4% Interest expense = $349,363 + ($8,783,433 4%) = $700,700

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Definitions:

Delegation of Duties

The act of assigning specific tasks or responsibilities, originally held by one individual or group, to another.

Delegator

One who delegates his or her duties under a contract to another, called the delegatee.

Assign Contract Rights

The act of transferring one's rights and obligations under a contract to another party.

Sale of Goods

The transaction of exchanging commodities for money between two parties, under regulated legal conditions.