Question
Garland Company received proceeds of $188,000 on 10-year, 9% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest
Garland Company received proceeds of $188,000 on 10-year, 9% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Garland uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2016?
Select one:
A. $200,000B. $190,400C. $191,600D. $189,200E. None of the above.
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Fundamental Accounting Principles
Authors: Larson Kermit, Tilly Jensen
Volume I, 14th Canadian Edition
71051503, 978-1259066511, 1259066517, 978-0071051507
