Question
On January 1, 2010, Flounder Inc. issued $600,000, 10-year, 5% bonds for $565,200. The bonds pay interest on December 31. The market rate is 6%.
On January 1, 2010, Flounder Inc. issued $600,000, 10-year, 5% bonds for $565,200. The bonds pay interest on December 31. The market rate is 6%.
What is the carrying value of the bonds after the SECOND interest payment is made on December 31, 2011?
a. $568,593
b. $573,259
c. $569,112
d. $600,000
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Face value of Bonds 600000 Less Issue Price 565200 Discount on Bonds 34800 Issu...
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Cost Accounting
Authors: William K. Carter
14th edition
759338094, 978-0759338098
