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Foley Company Issued $800,000 of 6%, 5-Year Bonds at 98

Question 157

Multiple Choice

Foley Company issued $800,000 of 6%, 5-year bonds at 98, which pays interest annually. Assuming straight-line amortization, what is the total interest cost of the bonds?


A) $240,000
B) $256,000
C) $224,000
D) $232,000

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