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Question - On July 1 the Stanley Corporation issues $2,000,000 of 10-year, 7.5% bonds dated July 1 at 91 when the market rate of interest is 9%.
Stanley Corporation uses the straight-line method of amortization.
Interest is paid each June 30 and December 31.
Find the interest expense recognized for the first semiannual interest payment on December 31?
A. $9,000.
B. $75,000.
C. $84,000.
D. $180,000.
A company purchases £10,000 3i% War Loan at 88 cum interest on 1st April, 1958. Brokerage and Stamp Duties amounted to £4. On 1st May, 1958.
At a local Bed and Bath Superstore, the manager, Jill Roe, knows her customers will pay no more than $300 for a bedspread. Jill wants a 35% markup on selling price. What is the most that Jill can pay for a bedspread?
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