In 2017,Aspinwall Company issued $200,000 of bonds for $175,000.If the face rate of interest was 9% and the effective rate of interest was 7.99%,how would Aspinwall calculate the interest expense for the first year on the bonds using the effective interest method?
A) $175,000 × 7.99%
B) $175,000 × 9%
C) $10,000 × 7.99%
D) $10,000 × 9%
Correct Answer:
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