What is the amount of interest expense (in Canadian Dollars) recorded for 2016?
A) $250,000.
B) $287,250.
C) $287,325.
D)$372,500.

Question

Quizplus · Accepted Answer

The interest expense for 2016 can be calculated by adding the interest expense for the current year ($200,000) and the amortization of the bond discount for the current year ($87,325). Therefore, the amount of interest expense for 2016 is $287,325, which corresponds to choice C.

What Is the Amount of Interest Expense (In Canadian Dollars)