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Business, 05.12.2019 01:31 hipeopleitsme121

Carmen company issued 10-year bonds on january 1. the 15% bonds have a face value of $100,000 and pay interest every january 1 and july 1. the bonds were sold for $117,205 based on the market interest rate of 12%. carmen company uses the effective interest rate method to amortize bond discounts and premiums. on july 1 of the same year, carmen should record interest expense (rounded to the nearest dollar) of a.$7,500. b.$8,790. c.$14,065. d.$7,032.

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