3.20

Bonds payable are dated January 1,2017 , and are issued on that date. The face value of the bonds is $175,000, and the face rate of interest is 10%. The bonds interest semiannually. The bonds will mature in five years. The market rate of interest at the time of issuance was 8%. Assume that the boember are rember 31,2017 , at 102, when carrying value was $186,781.15