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Scribner Company Issued $400,000 of 8%, 5-Year Bonds at 106

Question 231

Multiple Choice

Scribner Company issued $400,000 of 8%, 5-year bonds at 106. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date?


A) $32,000
B) $36,800
C) $27,200
D) $4,800

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