True or False? Bond interest expense is the interest cash payment minus the amount of bond...
True or False? Bond interest expense is the interest cash payment minus the amount of bond premium amortization.
Homework Answers
Solution:
True.
Bond interest expense is the interest cash payment minus the amount of bond premium amortization
This is because when bonds are issued on premium, inerest cash payment is reduced by premium amortized to arrive at Interest expense of bond.
Hence, the statement is true.
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True or False? Bond interest expense is the interest cash
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if
$691,000 of 8% bonds are issued at 94, what is the amount of cash
recieved from the sale ?
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