Congrats to mrssnikal and KaliKingz!
A Randbetween excel function was used to choose the winners.
Please email support@another71.com for your free MCQ section.
Answer: D – If bonds are purchased at a discount, then the discount is immediately recorded as a credit in the acquiring corporation’s books. As the discount is amortized, it is thus debited, to decrease it. When cash is received as interest, the additional debit to amortize the discount adds to the debit to cash to increase the total credit to recognized revenue.
Therefore, the total revenue for the year will be the cash received as interest over the semiannual period, $500,000 (face amount) × 0.08 (8%) × 6/12, or $20,000, plus the $1,800 discount amortized, for a total revenue for the year of $21,800.
Source: NINJA MCQ (https://www.another71.com/shop/ninja-mcq-far/)
.