Can I send you a few more questions to answer in the next 10 minutes?
On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid annually each 12/31. The bonds are issued to provide an effective (market) interest rate of6%. Round all amounts to the nearest dollar. The bond's carrying value reported in Behrend's year-end 12/31/2014 balance sheet is:
$10,000,000.
$9,441,762.
$10,578,637.
none of the above.
On January 1, 2014, Behrend Corp. issues 8-year bonds with a total face value of $10,000,000 and a stated interest rate of 5%with interest paid annually each 12/31. The bonds are issued to provide an effective (market) interest rate of6%. Round all amounts to the nearest dollar. The amount of interest expense recognized in Behrend's 2014 income statement is:
$500,000.
$532,316.
$562,741.
none of the above.