Thomas Marley Antiques issued its 8%, 10-year bonds payable at a price of $229,930 (face value...

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Thomas Marley Antiques issued its 8%, 10-year bonds payable at a price of $229,930 (face value is $300,000). The company uses

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Answer 1

Answer #1

Annual Coupon on bonds = 300,000*8% = $24,000

Discount on bonds = 300,000-229,930 = $70,070

Amortized each year = 70,070/10 = $7,007

Hence, interest expense each year = 24,000+7,007

= $31,007

Hence, the answer is B.

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Answer 2

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Thomas Marley Antiques issued its 8%, 10-year bonds payable at a price of $229,930 (face value...

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Thomas Marley Antiques issued its 8%, 10-year bonds payable at a price of $229,930 (face value...

Homework Answers

Add Answer to: Thomas Marley Antiques issued its 8%, 10-year bonds payable at a price of $229,930 (face value...

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Thomas Marley Antiques issued its 8%, 10-year bonds payable at a price of $229,930 (face value...