On January 1, 2016, Solo Inc. Issued 1,400 of its 9%, $1,000 bonds at 98....
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Accounting
On January 1, 2016, Solo Inc. Issued 1,400 of its 9%, $1,000 bonds at 98. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2026. Solo paid $54,000 in bond issue costs. Solo uses straight-line amoritization. The amount of the interest expense for the year is:
1.) $128,800
2.) $134,200
3.) $126,000
4.) $137,000
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