On january 1, 2015, abc company issued $10,000 of 8%, 12 year bonds for $9,632 cash. the bonds are dated january 1, 2015, and pay interest annually each december 31. the market rate of interest on the bonds is 8.5% on the issue date. the bond interest expense to be reported on the income statement for the year ended december 31, 2015will be somewhere between: a) 0 and $774b) $775-794c) $795-814d) $815-834e) $835 and $1,000the cash paid for interest on december 31, 2015would be: a) $768b) $800c) $816d) $850

The bond interest expense to be reported on the income statement for the year ended December 31, 2015 = 8% x $10,000 = $800.

The bond interest expense is between $795 to $814

The correct answer is C

The cash paid for interest on December 31, 2015 = $800.

The correct answer is B

Explanation:

The interest expense on bond is calculated on the nominal value(face value) of the bond. The face value is $10,000 and coupon is 8%. Thus, we will calculate 8% of $10,000, which is equal to $800.

answer; i believe that the correct answer is (d)when the products are consumed or

answer; commerce clearing house;