Multiple Choice
Use the following to answer questions
Jones Company issued bonds with a $200,000 face value on January 1,2016.The five-year term bonds were issued at 97 and had a 7 ½ % stated rate of interest that is payable in cash on December 31st of each year.Jones amortizes the bond discount using the straight-line method.Based on this information:
-The amount of interest expense shown on Jones's December 31,2016 income statement would be:
A) $16,200.
B) $21,000.
C) $15,000.
D) $13,800.
Correct Answer:
Verified
Correct Answer:
Verified
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