On January 1, 2012, Beta Company issued 5-year bonds having a face value of $100,000. The bonds pay 7% interest annually and were sold for $94,706 to…
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- On January 1, 2012, Beta Company issued 5-year bonds having a face value of $100,000. The bonds pay 7% interest annually and were sold for $94,706 to yield 8.34% interest. Beta’s 2012 income statement should report what amount for interest expense on these bonds?
- A.$6,630
- B.$7,000
- C.$7,898
- D.$8,340
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