Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. porter, inc. issued $400,000, 10 year, 10% bonds f

Porter, Inc. issued $400,000, 10 year, 10% bonds for $354,200 on January 1, 2022; the...

70.2K

Verified Solution

Question

Accounting

Porter, Inc. issued $400,000, 10 year, 10% bonds for $354,200 on January 1, 2022; the bonds pay interest semiannually on June 30 and December 31. On the date of issuance, the interest rate in the bond market is 12%. For the year ending on December 31, 2022 Porter recorded $42,579 as the interest expense. The carrying value of the bond on December 31, 2022 is $356,779. What is the total cost of borrowing over the life of this bond?
Answer choices:
A) $45,800
B) $354,200
C) $400,000
D) $445,800
E) $800,000

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Basic Math
1.2K views

The number of male alates​ (winged ants) in an ant colony has been found to be...

Biology
1.2K views

Debate the efficacies of public versus private-based quality initiatives. What roles do each play in the...

Chemistry
1.2K views

A 100.0 mL solution containing 0.756 g of maleic acid (MW = 116.072 g/mol) is titrated...

Civil Engineering
1.2K views

Discuss the challenges posed by the drilling activities on reservoir completion.

Biology
1.2K views

The seeds of a flowering plant consist of a n Select Select tissue endosperm The...

Statistics
1.2K views

Many people now turn to the Internet to get information on health related topics A...

Calculus
1.2K views

On the graph of f x cot x and the interval 2 0 for what...

Accounting
1.2K views

The assignment is to create two amortization tables for notes receivable. You are...

Accounting
1.2K views

1) Which of the following is an advantage of cash basis accounting vs. accrual basis...

Accounting
1.2K views

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following...

Accounting
1.2K views

please show equations to any data not given Yancey Productions is a film studio...

Accounting
1.2K views

Check my work mode : This shows what is correct or incorrect for the work...