On January 1 of the current year, Barton Corporation issued 8% bonds with a face value of $103,000. The bonds are sold for $97,850. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is a.$9,785 b.$515 c.$9,270 d.$4,120
Answer :-
The bond interest expense for the year ended December 31 is = $ 9270
Explanation- Bond interest expense for the year ended December 31 = ($103000*8%) + ($103000 - $97850)/5 years
= $ 8240 + $ 1030
= $ 9270
So, the correct answer is option (c) $9270
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