Question
On January 1, 2016, a company issued $401,200 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 $401,200 of 10-year, 12% bonds. The interest is payable semi-annually on June 30 and December 31. The issue price was $415,553 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)?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
