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If a corporation issued $2,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%? a

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If a corporation issued $2,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%? a. $2,000,000 b. $60,000 c. $200.000 d. $140,000 64. A $1,000 face value bond with a quoted price of 98 is selling for a $1,000. b. $980. C. $908 d. $98 65 A bond with a face value of $100,000 and a quoted price of 102% has a selling price of $ a. $120.225 b. $102,025 C. $100,225. d. $102,250 68 On January 1, 2008, Grant Corporation issued $3,000,000, 10-year, 8% bonds at 102. Interest is payable semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2008 is a. Cash 3,000,000 Bonds Payable 3,000,000 b. Cash 3,060,000 Bonds Payable 3,060,000 c. Premium on Bonds Payable 60,000 Cash 3,000,000 Bonds Payable.. 3,060,000 d. Cash .. 3.060,000 Bonds Payable 3,000,000 Premium on Bonds Payable 60,000 70. If the market interest rate is 10%, a $10,000, 12%, 10-year bond, that pays interest semiannually would sell at an amount a. less than face value. b. equal to face value. . C greater than face value d. that cannot be determined. 72 Gomez Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2008, at 98. The journal entry to record the issuance will show a a. debit to Cash of $1,000,000. b. credit to Discount on Bonds Payable for $20,000 C. credit to Bonds Payable for $980,000. d. debit to Cash for $980,000. 80. Two thousand bonds with a face value of $1,000 each, are sold at 103. The entry to a $ record the issuance is a. Cash 2,060,000 Bonds Payable 2,060,000 b. Cash 2,000,000 Premium on Bonds Payable 60.000 Bonds Payable 2,060,000 C. Cash 2,060,000 Premium on Bonds Payable 60,000 Bonds Payable 2,000,000 d. Cash 2,060,000 Discount on Bonds Payable 60,000 Bonds Payable ...... 2,000,000 82 Mendez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2008, at 103. The journal entry to record the issuance will show a a. debit to Cash of $2,000,000. b. credit to Premium on Bonds Payable for $60,000. c. credit to Bonds Payable for $2,030,000. d. credit to Cash for $2,060,000. $