On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest semi-annually each June 30h and December 31 at a stated rate of 6% per annum. The market rate for the year was 8%. The bonds mature exactly 10 years from the date of issue. Tantor uses the effective interest method, as required by IFRS. The amount of interest expense recorded by Tantor on June 30, 2018 with respect to these bonds was closest to: Select one: O a. $634,733. O b. $799,780. O C. $518,465. O d. $691,287.

On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest semi-annually each June 30h and December 31 at a stated rate of 6% per annum. The market rate for the year was 8%. The bonds mature exactly 10 years from the date of issue. Tantor uses the effective interest method, as required by IFRS. The amount of interest expense recorded by Tantor on June 30, 2018 with respect to these bonds was closest to: Select one: O a. $634,733. O b. $799,780. O C. $518,465. O d. $691,287.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 7MCQ

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