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Sweetwater Company sells $550,000 of 7%, 15-year bonds for 48.25 on April 1, 2018. The...

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Accounting

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Sweetwater Company sells $550,000 of 7%, 15-year bonds for 48.25 on April 1, 2018. The market rate of interest on that day is 16.5%. Interest is paid each year on April 1. The issue price of the bond is $265,375. Sweetwater Company uses the straight-line amortization method. The amount of interest expense for each year will be (Round intermediary calculations to the nearest whole number.) O A. $57,475 B. $38,500 C. $36,616. OD. $109,725 O E none of these

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