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A Company Issued 25-Year,8% Bonds with a Par Value of $900,000.The

Question 56

Multiple Choice

A company issued 25-year,8% bonds with a par value of $900,000.The company received $1,000,000 cash for the bonds.Using the straight-line method,the amount of interest expense for the first semiannual interest period is:


A) $36,000
B) $34,000
C) $38,000
D) $40,000
E) $32,000

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