223

223. On January 1, Dade Corporation issued $3,000,000, 7%, 5-year bonds with interest payable on December 31. The bonds sold for $3,216,288. The market rate of interest for these bonds was 6%. On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for

A) $180,000.
B) $225,140.
C) $192,977.
D) $210,000.

Correct Answer:

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