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On January 1, 2016, Sanchez Corporation issued 5-year $200,000 bonds with a 4% stated rate of interest at 97. Sanchez Corporation pays the interest annually
On January 1, 2016, Sanchez Corporation issued 5-year $200,000 bonds with a 4% stated rate of interest at 97. Sanchez Corporation pays the interest annually on December 31 and uses the straight-line amortization method. What is the carrying value of the bonds that Sanchez Corporation will report on its balance sheet at the end of 2016?
A. $195,200 B. $194,000 C. $192,800 D. $200,000
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