Question
On January 1, Year 1, John Deere Company issued bonds with a $200,000 face value, a stated rate of interest of 7.5%, and a 5-year
On January 1, Year 1, John Deere Company issued bonds with a $200,000 face value, a stated rate of interest of 7.5%, and a 5-year term to maturity. The bonds were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method.
What is the carrying value of the bonds shown on John Deere's balance sheet at December 31, Year 2?
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AML Auditing Understanding Transaction Monitoring
Authors: Bob Walsh
1st Edition
1539519740, 978-1539519744
