On January 1, Elias Corporation issued 7% bonds with a face value of $78,000. The bonds are sold for $75,660. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is Oa. $455 Ob. $5,694 Oc. $5,460 Od. $2,340

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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On January 1, Elias Corporation issued 7% bonds with a face value of $78,000. The bonds are sold for $75,660. The bonds pay interest
semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elías records straight-line
amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is
Oa. $455
Ob. $5,694
Oc. $5,460
Od. $2,340
Transcribed Image Text:On January 1, Elias Corporation issued 7% bonds with a face value of $78,000. The bonds are sold for $75,660. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elías records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is Oa. $455 Ob. $5,694 Oc. $5,460 Od. $2,340
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