11 NEED HELP ASAP Hooke Company received proceeds of $377,000 on 10-year 8% bond

Question

11 NEED HELP ASAP

Hooke Company received proceeds of $377,000 on 10-year 8% bonds issued on January 1 of the current year. The bonds had a face value of $400,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Hooke uses the straight-line method of amortization. What is the amount of interest expense Hooke will show with relation to these bonds for the year ended December 31 of the current year?

$32,000

$30,160

$34,300

$29,700

$32,000

$30,160

$34,300

$29,700

Explanation / Answer

The Face Value of the Bonds = $ 400,000

Interest Rate = 8%

The amount of Interest expense Hooke will show with relation to these bonds for the year ended Deceemnber 31 of the current year = $ 32,000 ( $ 400,000 * 8% = $ 32,000)

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.