Homework answers / question archive / On January 1, 2020, Vaughn Manufacturing sold 11% bonds with a face value of $2350000

On January 1, 2020, Vaughn Manufacturing sold 11% bonds with a face value of $2350000

Accounting

Share With

On January 1, 2020, Vaughn Manufacturing sold 11% bonds with a face value of $2350000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2536000 to yield 9%. Using the effective-interest method of amortization, interest expense for 2020 is

$227559.

$258500.

$211500.

$228190.