A company issues $20,000,000, 7.8%, 20-year bonds to yield an effective rate 8% on January 1, 2014. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,144. What is interest expense for 2015, using straight-line amortization? A) $1,540,208 B) $1,560,000 C) $1,569,192 D) $1,579,793

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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A company issues $20,000,000, 7.8%, 20-year bonds to yield an effective rate 8% on January 1, 2014. Interest is paid on June 30 and December 31. The proceeds from the bonds are $19,604,144. What is interest expense for 2015, using straight-line amortization?

A) $1,540,208
B) $1,560,000
C) $1,569,192
D) $1,579,793

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