On January 1,2010,Jacob Issues $600,000 of 11%,15-Year Bonds at a Price

question 46

Multiple Choice

On January 1,2010,Jacob issues $600,000 of 11%,15-year bonds at a price of 102½.Six years later,on January 1,2016,Jacob retires 30% of these bonds by buying them on the open market at 98½. 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)$975,000
• B)$964,000
• C)$936,000
• D)$772,000
• E)$990,000

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Junk Food

Food items that are high in calories but low in nutritional value, often containing high levels of sugar, fat, or salt.

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Physical activities undertaken to maintain or improve health and fitness.

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The state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

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A unit of energy usually used to measure the energy content in food and beverages.