# I need help with a math problem

label Mathematics
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On October 1, 2010 Macklin Corporation issued 5%, 10-year bonds with a face value of \$1,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.

Bond interest expense reported on the December 31, 2010 income statement of Macklin Corporation would be
a. \$11,500
b. \$12,500
c. \$13,500
d. \$23,000

Nov 19th, 2015

On October 1, 2010 Macklin Corporation issued 5%, 10-year bonds with a face value of \$1,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.

Bond interest expense reported on the December 31, 2010 income statement of Macklin Corporation would be
b. \$12,500

Annual Int payable is 5%*\$1,000,000 = \$50,000
Oct-Dec is 3 months.
So Int Payble is \$50,000*3/12 = \$12,500

Nov 19th, 2015

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Nov 19th, 2015
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Nov 19th, 2015
Nov 20th, 2017
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