On January 1, Thompson Corporation issued $4,000,000, 14%, 5-year bonds with interest payable on December 31.The bonds sold for $4,288,384.The market rate of interest for these bonds was 12%.On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for
A)$480,000.
B)$502,324.
C)$514,606.
D)$560,000.

Question

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The Answer of On January 1, Thompson Corporation issued $4,000,000, 14%, 5-year bonds with interest payable on December 31.The bonds sold for $4,288,384.The market rate of interest for these bonds was 12%.On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for
A)$480,000.
B)$502,324.
C)$514,606.
D)$560,000.

On January 1, Thompson Corporation Issued $4,000,000, 14%, 5-Year Bonds