On January 1, 2019, Tonika Company issued a six-year, $10,000, 10% bond. The interest is...
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Accounting
On January 1, 2019, Tonika Company issued a six-year, $10,000, 10% bond. The interest is payable annually each December 31. The issue price was $9,577 based on an 11% effective interest rate. Tonika uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to:
Multiple Choice
$1,171.
$1,053.
$1,000.
$958.
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