Multiple Choice
A company receives $102,000 when it issues a bond with a face value of $100,000 and a stated interest rate of 7%.Which of the following statements is correct?
A) The entry to record the issuance will include a credit to Bonds Payable for $102,000.
B) The market interest rate is 7%.
C) The annual interest expense is $7,000.
D) The carrying value of the bonds will be $100,000 at maturity.
Correct Answer:
Verified
Correct Answer:
Verified
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