Use the Information Below for Fargo Corp

question 4

Multiple Choice

Use the information below for Fargo Corp.for 2013 and 2014 to answer the following question. At the end of 2014,Fargo issued bonds at par value for $800,000 cash.The proceeds from these bonds were used to retire the $500,000 bond issue outstanding at the end of 2013 (before their maturity date) .All interest expense was paid in cash during 2014.
How much did Fargo pay to retire the $500,000 bond issue during 2014?

• A)$485,000
• B)$500,000
• C)$515,000
• D)$560,000

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Definitions:

Schizophrenia

A chronic brain disorder characterized by delusions, hallucinations, and other cognitive difficulties.

Delusion

A false belief held with strong conviction despite superior evidence to the contrary.

False Belief

A conviction or perception that contradicts reality or factual evidence, often a focus in studies of cognitive development and psychology.

Evidence

Information or facts presented in support of an assertion, claim, or case.