Multiple Choice
Gammell Company issued $50,000 of 9% bonds with annual interest payments. The bonds mature in ten years. The bonds were issued at $48,000. Gammel Company uses the straight-line method of amortization. How much is the annual interest expense?
A) $4,700.
B) $4,300.
C) $4,500.
D) $4,680.
Correct Answer:
Verified
Correct Answer:
Verified
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