Pharoah Home Supply Company received proceeds of $744000 on 10-year, 8% bonds issued on January 1, 2025. The bonds had a face value of $796000, pay interest annually on December 31, and have a call price of 102. Pharoah Home Supply uses the straight-line method of amortization. What is the amount of interest Pharoah Home Supply will pay bondholders in 2025? O $68880 $58480 0 $63680 $59520
Pharoah Home Supply Company received proceeds of $744000 on 10-year, 8% bonds issued on January 1, 2025. The bonds had a face value of $796000, pay interest annually on December 31, and have a call price of 102. Pharoah Home Supply uses the straight-line method of amortization. What is the amount of interest Pharoah Home Supply will pay bondholders in 2025? O $68880 $58480 0 $63680 $59520
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 15MCQ
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![Pharoah Home Supply Company received proceeds of $744000 on 10-year, 8% bonds issued on January 1,
2025. The bonds had a face value of $796000, pay interest annually on December 31, and have a call price of
102. Pharoah Home Supply uses the straight-line method of amortization. What is the amount of interest
Pharoah Home Supply will pay bondholders in 2025?
$68880
O $58480
O $63680
O$59520](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc644a57b-a889-4ced-bd45-96df5870c07a%2F5aa82f51-b1c8-45e3-a924-7409e9a9ba23%2Fnti6e3r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pharoah Home Supply Company received proceeds of $744000 on 10-year, 8% bonds issued on January 1,
2025. The bonds had a face value of $796000, pay interest annually on December 31, and have a call price of
102. Pharoah Home Supply uses the straight-line method of amortization. What is the amount of interest
Pharoah Home Supply will pay bondholders in 2025?
$68880
O $58480
O $63680
O$59520
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