Question
On January 1, 2020, Sum Company issued a four-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,668
On January 1, 2020, Sum Company issued a four-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,668 based on an 8% effective interest rate. Sum uses the effective-interest amortization method.
The book value of the bonds as of December 31, 2020 is closest to:
Select one:
a. $8,968.
b. $9,741.
c. $9,641.
d. $9,945.
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3 Column Record 100 Page Account Book
Authors: IJ Publishing LLC
Ntb Edition
1537091360, 978-1537091365
