Cubs Corporation issues $530,000,12%, 5−yearbonds on January 1, 2019 for $489,000. Interest is paid annually on January 1. If Cubs Corporation uses the straight−line method of amortization of bond discount, the amount of interest expense recorded at December 31, 2019 would be:

Cubs Corporation issues $530,000,12%, 5−yearbonds on January 1, 2019 for $489,000. Interest is paid annually on January 1. If Cubs Corporation uses the straight−line method of amortization of bond discount, the amount of interest expense recorded at December 31, 2019 would be:

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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