For the bonds issued in Question 17, what is the carrying value of the bonds at the end of the third interest period?

a. \(\$ 492,000\).

b. \(\$ 488,000\).

c. \(\$ 472,000\).

d. \(\$ 464,000\).

Data from Questions 17

On January 1, Xiang Corporation issues \(\$ 500,000,5\)-year, \(12 \%\) bonds at 96 with interest payable on January 1 . The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a:

debit to Interest Expense \(\$ 57,600\).

debit to Interest Expense \(\$ 60,000\).

credit to Discount on Bonds Payable \(\$ 4,000\).

credit to Discount on Bonds Payable \(\$ 2,000\).