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209

Question 15

Multiple Choice

209. A corporation issues $500,000, 8%, 10-year bonds on January 1, 2018 for $479,000. Interest is paid annually on January 1. If the corporation uses the straight- line method of amortization of bond discount, the amount of bond interest expense to be recognized on December 31, 2018 is


A) $40,420.
B) $40,000.
C) $42,100.
D) $37,900.

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