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On January 1, 2022, Pipestone Corporation issued a four-year, $40,000,10% bond. The interest is payable annually each December 31 . The issue price was $38,758

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On January 1, 2022, Pipestone Corporation issued a four-year, $40,000,10% bond. The interest is payable annually each December 31 . The issue price was $38,758 based on an 11% effective interest rate. Pipestone uses the effectiveinterest amortization method. The December 31, 2023 book value after the December 31,2023 interest payment was made is closest to: Multiple Choice $38,734 $38,758. $39,313. $38,947

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