Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest...
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Accounting
Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest for $1,470,226. The annual market rate of interest on the date of issue was 8%. Assuming effective interest method of amortization, calculate the bond interest expense on the first interest payment date.
A.
$117,618
B.
$ 48,000
C.
$ 58,809
D.
$129,774
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