On January 1, 2020, Rex Co issued $4,000,000 face value, 14%, 5-year bonds at $4,288,384....
50.1K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2020, Rex Co issued $4,000,000 face value, 14%, 5-year bonds at $4,288,384. This price resulted in a 12% effective-interest rate on the bonds. Rex Co uses the effective-interest method to amortize bond premium. The bonds pay annual interest on each January 1.
How much interest expense did Rex Co record on December 31, 2020?
Group of answer choices
a. $480,000
b. $560,000
c. $514,606
d. $502,324
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.