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On January 1, current year, Karen company issued $500,000, 10-year, 9% bonds for $468,845. The bonds pay interest on June 30 and December 31. The
On January 1, current year, Karen company issued $500,000, 10-year, 9% bonds for $468,845. The bonds pay interest on June 30 and December 31. The market rate is 10%. The company uses the effective interest method of amortizing bond discounts and premiums. What is the carrying value (rounded to the nearest dollar) of the bonds after the first interest payment is made on June 30, current year?
A) $467,903
B) $469.787 (CORRECT ANSWER)
C) $472,747
D) $470,730
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