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Question - Herman Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2009. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Herman uses the straight-line method of amortization.
What is the amount of interest expense Herman will show with relation to these bonds for the year ended December 31, 2010?
a. $16,000
b. $15,080
c. $17,150
d. $14,850
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Show transcribed image text 4.1 Middleton Clinic had total assets of $50,000 and an equity balance of $350,000 at the end of 2010. One year later, at the end of 2011, the clinic had $575,000 in assets and $380,000 in equity.
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