On January 1, current year, Kaleidoscope Paint issued $500,000, 10-year, 9% bonds for $480,745. The bonds pay interest on June 30 and December 31. The market rate is 10%. The company plans to use the effective interest method of amortizing bond discounts and premiums. What is the carrying value of the bonds on the maturity date?

Question 27 options:

	$0
	$19,255
	$480,745
	$500,000

When a bond is issued at a discount, the amortization of the bond interest increases each year using the straight-line method.

Question 30 options:

	True
	False