A Company Issued $100,000 5-Year,7% Bonds and Received $101,137 in Cash.The

Multiple Choice

A company issued $100,000 5-year,7% bonds and received $101,137 in cash.The market rate of interest when the bonds were issued was 6.5%.What is the amount of interest expense to be recorded for the first annual interest period if the company uses the effective-interest method of amortization?

A) $6,573.91
B) $7,000.00
C) $6,500.00
D) $7,079.59