Cramer company sold five-year 8 bonds on october 1 2016 the, Ask an Expert

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Cramer Company sold five-year, 8% bonds on October 1, 2016. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report in its December 31, 2016, income statement (assume straight-line amortization)? $2,000. $1,900. $1,778. $2,040.

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Financial Accounting, Accounting

Category:- Financial Accounting
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