On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest semi-annually each June 30h and December 31 at a stated rate of 6% per annum. The market rate for the year was 8%. The bonds mature exactly 10 years from the date of issue. Tantor uses the effective interest method, as required by IFRS. The amount of interest expense recorded by Tantor on June 30, 2018 with respect to these bonds was closest to: Select one: O a. $634,733. O b. $799,780. O C. $518,465. O d. $691,287.
On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest semi-annually each June 30h and December 31 at a stated rate of 6% per annum. The market rate for the year was 8%. The bonds mature exactly 10 years from the date of issue. Tantor uses the effective interest method, as required by IFRS. The amount of interest expense recorded by Tantor on June 30, 2018 with respect to these bonds was closest to: Select one: O a. $634,733. O b. $799,780. O C. $518,465. O d. $691,287.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay
interest semi-annually each June 30th and December 31 at a stated rate of 6% per annum.
The market rate for the year was 8%. The bonds mature exactly 10 years from the date of
issue. Tantor uses the effective interest method, as required by IFRS.
The amount of interest expense recorded by Tantor on June 30, 2018 with respect to these
bonds was closest to:
Select one:
O a. $634,733.
b. $799,780.
Oc $518,465.
Od. $691,287.
Notes (
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