Question
On January 1, 2016, a company issued $400,100 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue
On January 1, 2016, a company issued $400,100 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $413,353 based on a 10% market interest rate. The effective-interest method of amortization is used. What is the book value of the bond liability as of June 30, 2016 (to the nearest dollar)?
$400,100.
$416,691.
$403,438.
$410,015.
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Financial Accounting Reporting Analysis And Decision Making
Authors: Shirley Carlon, Rosina Mcalpine, Chrisann Lee, Lorena Mitrione, Ngaire Kirk, Lily Wong
7th Edition
0730395294, 978-0730395294
