Oriole Company received proceeds of $761500 on 10-year, 8% bonds issued on January 1, 2019. The bonds had a face value of $720000, pay interest annually on December 31, and have a call price of 102. Oriole uses the straight-line method of amortization. What is the amount of interest expense Oriole will report with relation to these bonds for the year ended December 31, 2020

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Answer: $57600

Explanation:

The amount of interest expense that Oriole will report with relation to these bonds for the year ended December 31, 2020 would be calculated as:

= $720000 × 8%

= $720000 × 8/100

= $720000 × 0.08

= $57600