Question
On January 1, 2010, Jacob issues $930,000 of 9%, 11 year bonds at a price of 96.5. All interest is accounted for and paid through
On January 1, 2010, Jacob issues $930,000 of 9%, 11 year bonds at a price of 96.5. All interest is accounted for and paid through December 31,2015, the day before the purchase. The straightline is used to amortize any bond discount. What is the carrying value of the bond on January 1, 2016?
You must show all work.
A. 915,210
B. 897,450
C. 963,390
D. 912,240
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Advanced Financial Accounting
Authors: Richard Baker, Valdean Lembke, Thomas King, Cynthia Jeffrey
8th Edition
73526916, 978-0073526911
