Respuesta :
Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Bond carrying value = $1,470,226
Rate of interest = 8%
Rate of interest (Semiannual ) = 4%
So, we can calculate the the bond interest expense on the first interest payment by using following formula:
The bond interest expense = Bond carrying value × rate of interest (semiannual)
By putting the value we get
= $1,470,226 × 4%
= $58,809
The art company bond expense on the first interest payments is $ 58, 809. This the option B is correct.
What is bond expense ?
The bond is a type of security under which the issuer holds a debt and is obliged to y under the due date and conditions.
As per the case o the company, bond carrying value is given as $1,470,226. While the interest rate is 8 percent. The rate of semiannual interest is about 4 percent. Thus the formula is
bond interest of expense is Bond carrying value X rate of interest (semiannual)
Hence we get = $1,470,226 × 4%
= $58,809
Find out ore infirmation about the company.
brainly.com/question/16045396.
