On January 1, 2024, Oriole Co. sold 12% bonds with a face value of $2650000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2854626 to yield 10%. If the effective-interest method of amortization is used, interest expense reported for 2024 is (Round intermediate values to 2 decimal places, e.g. 22.55.) O $285420 O $284649. O $318000. $265000
On January 1, 2024, Oriole Co. sold 12% bonds with a face value of $2650000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2854626 to yield 10%. If the effective-interest method of amortization is used, interest expense reported for 2024 is (Round intermediate values to 2 decimal places, e.g. 22.55.) O $285420 O $284649. O $318000. $265000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:On January 1, 2024, Oriole Co. sold 12% bonds with a face value of $2650000. The bonds mature in five years, and interest is paid
semiannually on June 30 and December 31. The bonds were sold for $2854626 to yield 10%. If the effective-interest method of
amortization is used, interest expense reported for 2024 is (Round intermediate values to 2 decimal places, e.g. 22.55.)
O $285420.
O$284649
O $318000.
O $265000.
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