Simpson Corporation issued $2,000,000 of 7.5%,six-year bonds dated March 1,2017,with semiannual interest payments on September 1 and March 1.The bonds were issued on March 1,2017,at 94.875.Simpson Corporation's year end is December 31.
a_Were the bonds issued at a premium,a discount,or at par?
b_Was the market rate of interest higher,lower,or the same as the contract rate of interest?
c_If the company uses the straight-line method of amortization,what is the amount of interest expense Simpson Corporation will show for the year ended December 31,2017?
d_What is the carrying value of the bonds on December 31,2017?

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The Answer of Simpson Corporation issued $2,000,000 of 7.5%,six-year bonds dated March 1,2017,with semiannual interest payments on September 1 and March 1.The bonds were issued on March 1,2017,at 94.875.Simpson Corporation's year end is December 31.
a_Were the bonds issued at a premium,a discount,or at par?
b_Was the market rate of interest higher,lower,or the same as the contract rate of interest?
c_If the company uses the straight-line method of amortization,what is the amount of interest expense Simpson Corporation will show for the year ended December 31,2017?
d_What is the carrying value of the bonds on December 31,2017?

Simpson Corporation Issued $2,000,000 of 7