Spring Company sells $250,000 of 6%,15-year bonds for 56.886 on April 1,2021.The market rate of interest on that day is12.5%. Interest is paid each year on April 1. The issue price of the bond is $142,215.Spring Company uses the straight-line amortization method. The amount of interest expense for each year will be (Round intermediary calculations to the nearest whole number.) Part 1 A. $15,000. B. $16,615. C. $22,186. D. $38,436. E. none of these.

Spring Company sells $250,000 of 6%,15-year bonds for 56.886 on April 1,2021.The market rate of interest on that day is12.5%. Interest is paid each year on April 1. The issue price of the bond is $142,215.Spring Company uses the straight-line amortization method. The amount of interest expense for each year will be (Round intermediary calculations to the nearest whole number.) Part 1 A. $15,000. B. $16,615. C. $22,186. D. $38,436. E. none of these.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...

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