In 2016, 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%

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The Answer of In 2016, 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%

In 2016, Aspinwall Company Issued $200,000 of Bonds for $175,000