Multiple Choice
Use the following to answer questions
Weller Company issued bonds with a face value of $400,000,a 10% stated rate of interest,and a 10-year term.The bonds were issued on January 1,2016,and Weller uses the effective interest method of amortization.The market rate of interest on the date of issue was 8%.Interest is paid annually on December 31.
-Assuming Weller issued the bond for $431,940,the amount of interest expense appearing on the 2018 income statement would be:
A) $33,649.
B) $20,000.
C) $34,120.
D) $46,350.
Correct Answer:
Verified
Correct Answer:
Verified
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