Auerbach inc issued 4 bonds on october 1 2013 the bonds, Ask an Expert

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Auerbach Inc. issued 4% bonds on October 1, 2013. The bonds have a maturity date of September 30,2023 and a face value of 300 million. the bonds pay interest each March 31 and September 30, beginning March 31, 2014. the effective interest rate established by the market was 6%. assuming that Auerbach issued the bonds for $255,369,000, what interest expense would it recognize in its 2013 income statement?

A. $0

B. $3,830,535

C. $5,107,380

D. 7,661,070.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91527402

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