Multiple Choice
On January 1, 20A, Winston Corporation sold 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. Assuming effective-interest amortization is used, the interest expense on the 20A income statement would be which of the following amounts (to the nearest dollar) ?
A) $1,547
B) $700
C) $773
D) $883
Correct Answer:
Verified
Correct Answer:
Verified
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