On November 1, 2015, Davis Company issued $30,600, ten-year, 7% bonds for $29,400. The bonds were dated November 1, 2015, and interest is payable each on May 1 and November 1. Davis uses the straight-line method of amortization. Which of the following is incorrect with regard to the Davis bonds when the straight-line method of amortization is utilized?

On November 1, 2015, Davis Company issued $30,000, five-year, 7% bonds for $29,500. The bonds were dated November 1, 2015, and interest is payable each on May 1 and November 1. Davis uses the straight-line method of amortization. How much is the book value of the bonds after the November 1, 2016 interest payment was recorded using the straight-line method of amortization?

4. 20.00 points valuc: On November 2015. Davis company issued $30,600, ten year, 7% bonds for $29.40 The bonds were dated November 2OS and interes spayable each on a and November 1 Davis uses the straight-line method of amortization. Which of the following is incorrect with regard to the Davis bonds when the straight-line method of amortization is utilized? O The book value of the bonds increases by $60.00 every six months. O The market rate of interest exceeded the coupon rate of interest when the bonds were issued O The semi-annual interest expense is $1.131 O The semi-annual interest expense is less than the semi-annual cash interest payment. value: 20.00 points On November 1, 2015, Davis Company issued $30,000, five-year, 7% bonds for $29,500. The bonds were dated November 1, 2015, and interest is payable each on May 1 and November 1. Davis uses the straight-line method of amortization. How much is the book value of the bonds after the November 1, 2016 interest payment was recorded using the straight-line method of amortization? O S29,500. O $29,400. O $29600 $29,700