Problem on straight-line method of amortization


On December 31, 2010, a corporation issued $200,000 face value, 12% bonds that mature 10 years from the date of issue. The issue price was 97. If the firm uses the straight-line method of amortization, interest expense for 2011 will be reported at:

a)$24,600

b)$24,000

c)$23,400

d)$19,400

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Accounting Basics: Problem on straight-line method of amortization
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