HW Question 2

On 1-1-2020, Marausky Corporation issued $100,000 (face value) of 6% bonds payable (i.e., the stated rate is 6%) for $84,556. Each bond has a face value of $1,000. The bonds are dated 1-1-2020 and mature 12-31-2024. Interest is paid semiannually on 6-30 and 12-31. The market rate of interest on similar bonds was 10% at the time of issue (i.e., 1-1-2020). Related to the bonds, what will be the long-term liability reported by Marausky Corporation on its 12-31-2020 balance sheet? 91,888 90,510 O 84,556 O 82,039 87.073 100,000 92,564 93,266 85,784