Question
Five years ago, Ella's issued 10-year $1,000,000 bonds. At issuance, the bonds had a discount of $80,000. Ella's uses the straight line method of amortization.
Five years ago, Ella's issued 10-year $1,000,000 bonds. At issuance, the bonds had a discount of $80,000. Ella's uses the straight line method of amortization. What is the carrying amount of the bonds today (after five full years)?
A) $1,000,000
B) $1,040,000
C) $920,000
D) $960,000
E) None of the other alternatives are correct
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Auditing & Assurance Services A Systematic Approach
Authors: William F Messier Jr, Steven M Glover, Douglas F Prawitt
11th Edition
1260687635, 1259969444, 9781259969447, 978-1260687637
