Multiple Choice
On January 1,2019,Tonika Company issued a four-year,$10,000,7% bond.The interest is payable annually each December 31.The issue price was $9,668 based on an 8% effective interest rate.Tonika uses the effective-interest amortization method.
- The interest expense on the income statement for the year ended December 31,2019 is closest to:
A) $677.
B) $883.
C) $773.
D) $700.
Correct Answer:
Verified
Correct Answer:
Verified
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