On April 1,2010,Jared Enterprises Issues Bonds Dated January 1,2010,that Have

question 61

Multiple Choice

On April 1,2010,Jared Enterprises issues bonds dated January 1,2010,that have a $2,430,000 par value,mature in 20 years,and pay 7% interest semiannually on June 30 and December 31.The bonds are sold at par plus four months' accrued interest.What is the total amount of cash Jared Enterprises will collect on April 1,2010?

• A)$2,600,100
• B)$2,430,000
• C)$2,486,700
• D)$2,750,000
• E)$2,515,050

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Definitions:

Salary Allowance

A specific amount of money allocated regularly to employees in addition to their regular salary, often for specific purposes such as travel or housing.