Simon Decorating issued its 7%, 20-year bonds payable at a price of OR 880,720 (maturity value is OR 900,000). The company uses the straight-line amortization method for the bonds. Interest expense for each year is: Select one: A. OR 63,000. B. OR 63,964. C. OR 62,036. D. OR 60,036.

Simon Decorating issued its 7%, 20-year bonds payable at a price of OR 880,720 (maturity value is OR 900,000). The company uses the straight-line amortization method for the bonds. Interest expense for each year is: Select one: A. OR 63,000. B. OR 63,964. C. OR 62,036. D. OR 60,036.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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Question

Please I want answer for this question of multiple choice. Big thanks

Simon Decorating issued its 7%, 20-year
bonds payable at a price of OR 880,720
(maturity value is OR 900,000). The company
uses the straight-line amortization method
for the bonds. Interest expense for each year
is:
Select one:
A. OR 63,000.
B. OR 63,964.
C. OR 62,036.
D. OR 60,036.

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