Denver Co.issued bonds with a face value of $100,000 and a stated interest rate of 8%.The bonds have a life of five years and were sold at 102 ½.If Denver amortizes discounts and premiums using the straight-line method,the amount of interest expense each full year would be:
A)$7,500.
B)$8,500.
C)$8,000.
D)$8,200.

Question

Quizplus · Accepted Answer

The Answer of Denver Co.issued bonds with a face value of $100,000 and a stated interest rate of 8%.The bonds have a life of five years and were sold at 102 ½.If Denver amortizes discounts and premiums using the straight-line method,the amount of interest expense each full year would be:
A)$7,500.
B)$8,500.
C)$8,000.
D)$8,200.

Denver Coissued Bonds with a Face Value of $100,000 and a a Stated