Long-term Liabilities
 
  1. Question: On January 1, Dias Corporation issued $1,000,000, 14%, 5-year bonds with interest payable on July 1 and January 1. The bonds sold for $1,098,540. The market rate of interest for these bonds was 12%. On the first interest date, using the effective-interest method, the debit entry to Bond Interest Expense is for:

    A
    $60,000

    B
    $76,000

    C
    $65,912

    D
    $131,825

    Note: Not available
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