Straight-line process of amortization of bond premium, Accounting Basics

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Straight-line process of amortization of bond premium

A corporation issues $100,000, 10%, 5-year bonds on January 1, 2009, for $104,200. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2009, is:

A) $4,580.

B) $10,420.

C) $5,000.

D) $5,420.

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Accounting Basics: Straight-line process of amortization of bond premium

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Accounting Basics: Straight-line process of amortization of bond premium

Reference No:- TGS087086

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Straight-line process of amortization of bond premium

Reference No:- TGS087086

Recent Questions Asked Accounting Basics

Q : Expense election under section-179

Q : Cash balance at the beginning of the month

Q : Problem based on holding period of a new truck

Q : Types of gaap accounting methods

Q : Straight-line process of amortization of bond premium

Q : Prepare a schedule analyzing the changes

Q : Example of permanently restricted resources

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Q : Calculate the present value of the future cash flows

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