Question
On January 1, 2016, Tonika Company issued a seven-year, $10,000, 6% bond. The interest is payable annually each December 31. The issue price was $9,461
On January 1, 2016, Tonika Company issued a seven-year, $10,000, 6% bond. The interest is payable annually each December 31. The issue price was $9,461 based on an 7% effective interest rate. Tonika uses the effective-interest amortization method.
The book value of the bonds as of December 31, 2016 is closest to:
rev: 10_08_2016_QC_CS-64487
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Principles Of Financial Accounting
Authors: Kermit Larson, John Wild
20th Edition
77338235, 978-0077619442
