Multiple Choice
Use the following to answer questions
Wayne Company issued bonds with a face value of $600,000,a 6% stated rate of interest,and a 10-year term.The bonds were issued on January 1,2016,and Wayne uses the straight-line method of amortization.Interest is paid annually on December 31.
-Assuming Wayne issued the bond for 102½,the amount of interest expense appearing on the 2016 income statement would be:
A) $34,500.
B) $36,000.
C) $37,500.
D) $15,000.
Correct Answer:
Verified
Correct Answer:
Verified
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