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Calculate the interest expense for the first year

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Question 1: In 2017, Aspinwall Company issued $200,000 of bonds for $175,000. If the face rate of interest was 9% and the effective rate of interest was 7.99%, how would Aspinwall calculate the interest expense for the first year on the bonds using the effective interest method?

Group of answer choices

Option a. $175,000 × 7.99%

Option b. $175,000 × 9%

Option c. $10,000 × 7.99%

Option d. $10,000 × 9%

Reference no: EM132558321

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