Question
On January 1, 2016, Tonika Company issued a seven-year, $10,000, 10% bond. The interest is payable annually each December 31. The issue price was $9,529
On January 1, 2016, Tonika Company issued a seven-year, $10,000, 10% bond. The interest is payable annually each December 31. The issue price was $9,529 based on an 11% effective interest rate. Tonika uses the effective-interest amortization method. The book value of the bonds as of December 31, 2016 is closest to:
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Principles Of Auditing: An International Perspective
Authors: Rick Stephan Hayes, Philip Wallage, Arnold Schilder, Roger Dassen
1st Edition
