A Company Issued 5-Year, 7% Bonds with a Par Value

question 129

Multiple Choice

A company issued 5-year, 7% bonds with a par value of $100,000. The market rate when the bonds were issued was 6.5%. The company received $102,105 cash for the bonds. Using the straight-line method, the amount of premium amortization per semi-annual interest period is:

• A)$3,289.50.
• B)$3,500.00.
• C)$210.50.
• D)$181.59.
• E)$421.00.

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Definitions:

Licensed Professionals

Individuals who have obtained a permit or authorization to practice their profession, following certain standards and regulations.

Ethical Decision Making

An approach to analyze and decide between choices based on ethical standards.

Least Restrictive Environment

A principle in special education mandating that students with disabilities should be educated alongside their non-disabled peers to the maximum extent appropriate.

PL94-142 and IDEA

U.S. laws ensuring the right to a free and appropriate public education for all children with disabilities; PL94-142 is the Education for All Handicapped Children Act of 1975, which was renamed and reauthorized as the Individuals with Disabilities Education Act (IDEA).