A company issued $220,000 5-year, 7.50% bonds and received $222,505 in cash. The market rate...
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Accounting
A company issued $220,000 5-year, 7.50% bonds and received $222,505 in cash. The market rate of interest when the bonds were issued was 7.00%. What is the amount of interest expense to be recorded for the first annual interest period if the company uses simplified effective-interest amortization?
Multiple Choice
$16,500.00
$16,687.88
$15,575.35
$15,400.00
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