On January 2,2017,Saturn Corporation issued $200,000,8%,10-year bonds for $220,000.The bonds pay interest each December 31.Saturn Corporation uses the straight-line method to amortize premium or discount.On December 31,2017,Saturn Corporation would record a:
A) credit to Cash for $16,000
B) debit to Interest Expense for $16,000
C) debit to Interest Expense for $18,000
D) credit Premium on Bonds Payable for $2,000
Correct Answer:
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