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On January 1, 2016, Tonka Company issued a six-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,538

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On January 1, 2016, Tonka Company issued a six-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,538 based on an 8% effective interest rate. Tonka uses the effective-interest amortization method The book value of the bonds as of December 31, 2016 is closest to: O $8,838 O $9,475 $9,601 O $63

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