Question
On January 1, 20x1, an entity issues bonds with face amount of $5,000,000 for 15,773,129. The bonds mature on December 31, 20x3 and pay annual
On January 1, 20x1, an entity issues bonds with face amount of $5,000,000 for 15,773,129. The bonds mature on December 31, 20x3 and pay annual interest of 14%. The effective interest rate is 8%. How much is the carrying amount of the bonds on December 31, 20x2?
a. 5,773,129
b. 5,278,787
c. 5,534,979
d. 5,277,778
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
