Question
31. On January 1, Patterson Inc. issued $4,000,000, 9% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interest is payable
31. On January 1, Patterson Inc. issued $4,000,000, 9% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Patterson uses the effective-interest method of amortizing bond discount. At the end of the second year, Patterson should report unamortized bond discount of
a. $118,400.
b. $228,400.
c. $211,240.
d. $204,000.
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve
9th Edition
0324381921, 978-0324381924
