Multiple Choice
On January 1,2010,Tonika Corporation issued a four-year,$10,000,7% bond.The interest is payable annually each December 31.The issue price was $9,668 based on an 8% effective interest rate.Assuming effective-interest amortization is used,what is the 2011 interest expense (to the nearest dollar) ?
A) $779
B) $796
C) $677
D) $700
Correct Answer:
Verified
Correct Answer:
Verified
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