In 2016, Aspinwall Company issued $200,000 of bonds for $175,000 . If the face rate of interest was 9% and the effective rate of interest was 7.99%, how would Aspinwall calculate the interest expense for the first year on the bonds using the effective interest method?
a. $175,000 × 7.99%
b. $175,000 × 9%
c. $10,000 × 7.99%
d. $10,000 × 9%
b
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