On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, which...
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Accounting
On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, which mature in 5 years. The bonds were issued for $96,207 to yield 10%, resulting in a bond discount of $3,793. Evangel uses the effective interest method of amortizing bond discount. Interest is payable annually on December 31.
What is the amount of interest expense that should be reported on Evangels income statement for the second year?
A.
$9,000
B.
$9,683
C.
$8,779
D.
$9,559
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