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A Company Owns $400,000 of 7% Bonds That Pay Interest

Question 42

Multiple Choice

A company owns $400,000 of 7% bonds that pay interest on October 1 and April 1.The amount of interest accrued on December 31 (the company's year-end) would be:


A) $4,667
B) $7,000
C) $28,000
D) $14,000
E) $9,333

Correct Answer:

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