Multiple Choice
A corporation issues $200,000, 8%, 5-year bonds on January 1, 2014, for $208,400. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized in December 31, 2014's adjusting entry is
A) $14,320.
B) $16,000.
C) $17,680.
D) $1,680.
Correct Answer:
Verified
Correct Answer:
Verified
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