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A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and December 31. The
A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,120. If the straight-line method of amortization is used, what carrying value will be reported for the bonds on the December 31, 2024 balance sheet? a. $14,752,672 b. $14,955,466 c. $14,725,374 d. $14,732,808 Ans: D, LO: 1, Bloom: AP, Difficulty: Moderate, Min: 3, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement Analysis and Interpretation, AICPA PC: None, IMA: Reporting & Control: Financial Recordkeeping, IFRS: None Solution: $14,703,120+ ($296,880 4/20) = $14,732,808.
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