Multiple Choice
Use the following information to answer questions
Alliance Corp. issued a $500,000, 8%, 10-year bond on March 1, 2010. The bond pays interest semi-annually on March 1 and September 1. At the time of issue, the market rate of interest was 10% and the bond sold for $437,700.
-How much interest expense did Alliance recognize on March 1, 2011?
A) $ 5,861
B) $ 6,667
C) $ 7,295
D) $ 7,705
E) $21,979
Correct Answer:
Verified
Correct Answer:
Verified
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