Vaughn Company received proceeds of $206800 on 10-year, 6% bonds issued on January 1, 2020. The bonds had a face value of $220000, pay interest annually on December 31, and have a call price of 101. Vaughn uses the straight-line method of amortization. What is the amount of interest Vaughn must pay the bondholders in 2020? $11880 $14520 $13200 $12320

Vaughn Company received proceeds of $206800 on 10-year, 6% bonds issued on January 1, 2020. The bonds had a face value of $220000, pay interest annually on December 31, and have a call price of 101. Vaughn uses the straight-line method of amortization. What is the amount of interest Vaughn must pay the bondholders in 2020? $11880 $14520 $13200 $12320

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

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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