Waterway Industries issued $650000 of 7%, 10-year bonds on one of its interest dates for $561405 to yield an effective annual rate of 9%. The effective-interest method of amortization is to be used. Interest is paid annually. What amount of discount (to the nearest dollar) should be amortized for the first interest period? $6202 $10053 $7974 $5026
Waterway Industries issued $650000 of 7%, 10-year bonds on one of its interest dates for $561405 to yield an effective annual rate of 9%. The effective-interest method of amortization is to be used. Interest is paid annually. What amount of discount (to the nearest dollar) should be amortized for the first interest period? $6202 $10053 $7974 $5026
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 15MCQ
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Waterway Industries issued $650000 of 7%, 10-year bonds on one of its interest dates for $561405 to yield an effective annual rate of 9%. The effective-interest method of amortization is to be used. Interest is paid annually.
What amount of discount (to the nearest dollar) should be amortized for the first interest period?
|
$6202 |
|
$10053 |
|
$7974 |
|
$5026 |
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