Exhibit 14-6 Omega, Inc. issued $100,000 of its 7% five-year bonds on January 1, 2014, at 98. Interest is paid on January 1 and July 1. The bonds are callable at 104 and straight-line amortization is used. The bonds are recalled on April 1, 2016.
-Refer to Exhibit 14-6. Interest expense for 2016 will be
A) $1,750
B) $1,800
C) $1,850
D) $1,900
Correct Answer:
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