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On July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of$500,000. Interest is paid semiannually on December 31 and
On July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of$500,000. Interest is paid semiannually on December 31 and June 30. The bonds were issued to yield 8%. The company uses the straight-line method to recognize interest expense. What is the carrying amount of the bonds on the company's December 31, 2019, balance sheet (rounded to the nearest dollar)?
A)$596,490 B)$598,964 C)$591,542 D)$594,016
How is the answer C?
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