. Brock Company received proceeds of $250,000 on 10-year, 10% bonds issued on January 1,...
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. Brock Company received proceeds of $250,000 on 10-year, 10% bonds issued on January 1, 2020. The bonds had a face value of $225,000, pay interest annually on January 1, and have a call price of 102. Lake uses the straight-line method of amortization.
What is the amount of interest Lake must pay the bondholders on January 1, 2021?
a. $11,250
b. $20,000
c. $22,500
d. $25,000
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