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problem1: Silver Company received proceeds of $94,250 on 10-year, eight percent bonds issued on January 1, 2007. The bonds had a face value of $100,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Silver uses the straight-line method of amortization. find out the amount of interest Silver must pay the bondholders in 2007?

[A] $8,575

[B] $7,425

[C] $7,540

[D] $8,000

problem2: Silver Company received proceeds of $94,250 on ten year, eight percent bonds issued on January 1, 2007. The bonds had a face value of $100,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Silver uses the straight-line method of amortization. find out the amount of interest expense Silver will show with relation to these bonds for the year ended December 31, 2008?

[A] $8,575

[B] $7,425

[C] $8,000

[D] $7,540

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