ABC Company Received $9,631 for Its 5-Year,10% Bonds with a Total

Multiple Choice

ABC Company received $9,631 for its 5-year,10% bonds with a total face value of $10,000.The market rate of interest was 11%.The bonds pay interest annually on December 31.How much interest expense will ABC Corporation record on the first annual interest payment date using the effective-interest method?

A) $1,059.41
B) $1,000
C) $1,100
D) $963.10