Net amount of bond interest expense


Elton Company issues 7%, 15-year bonds with a par value of $350,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%, which implies a selling price of 109¾. The effective interest method is used to allocate interest expense.

What total amount of bond interest expense will be recognized over the life of these bonds?

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Accounting Basics: Net amount of bond interest expense
Reference No:- TGS054071

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