On January 1, the Kings Corporation issued 10% bonds with a face value of $98,000. The bonds are sold for $96,040. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Kings records straight-line amortization of the bond discount. Determine the bond interest expense for the year ended December 31 of the first year is. Select the correct answer. $9,800 $9,604 $9,996 $1,960

The correct answer is $9,800

Explanation:

Solution:

Recall that

Kings Corporation issued bonds of = 10%

Face value = $98,000

Bonds sold for = 96,040

Determine the bond interest expense for the year ended December 31 of the first year

Now,

$98,000 * 10 bond = 9,800

Therefore, the bond interest expense for the year ended December 31 of the first year is + $9,800

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

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