Warren Company issued $850,000 of 6%, 5-year bonds dated on January 1, 2020, for $890,800. Interest is paid semi-annually. What is the total amount of interest expense for the bonds for the year 2020, assuming straight-line amortization? Multiple Choice O O O $59,160 $51.000 $50,660 $42,840

Warren Company issued $850,000 of 6%, 5-year bonds dated on January 1, 2020, for $890,800. Interest is paid semi-annually. What is the total amount of interest expense for the bonds for the year 2020, assuming straight-line amortization? Multiple Choice O O O $59,160 $51.000 $50,660 $42,840

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 8RE

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Question

Warren Company issued $850,000 of 6%, 5-year bonds dated on January 1, 2020, for $890,800. Interest is paid semi-annually. What is the total amount
of interest expense for the bonds for the year 2020, assuming straight-line amortization?
Multiple Choice
о
O
$59,160
$51,000
$50,660
$42.840

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