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Gunnison County Issued a $500,000,10 Percent,10-Year Bond on January 1,2014,for

Question 1

Multiple Choice

Gunnison County issued a $500,000,10 percent,10-year bond on January 1,2014,for 113.6 when the effective interest rate was 8 percent.Interest is payable on June 30 and December 31.Gunnison uses the effective-interest method to amortize all premiums and discounts.
-How much interest expense should Gunnison record on December 31,2014?


A) $25,000.00
B) $23,810.15
C) $19,920.10
D) $22,628.80

Correct Answer:

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