Question
On January 1, 2022, Pipestone Corporation issued a five-year, $40,000, 10% bond. The interest is payable annually each December 31. The issue price was $38,524
On January 1, 2022, Pipestone Corporation issued a five-year, $40,000, 10% bond. The interest is payable annually each December 31. The issue price was $38,524 based on an 11% effective interest rate. Pipestone uses the effective-interest amortization method.
The December 31, 2023 book value after the December 31, 2023 interest payment was made is closest to:
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Auditing And Assurance Services
Authors: Timothy J Louwers, Robert J. Ramsay, David Sinason, Jerry R Strawser
1st Edition
0072954442, 9780072954449
