Question
On October 1, 2006, Ming Co. purchased 100 of the $1,000 face value, 8% bonds of Loy, Inc., for $117,000, including accrued interest of $2,000.
On October 1, 2006, Ming Co. purchased 100 of the $1,000 face value, 8% bonds of Loy, Inc., for $117,000, including accrued interest of $2,000. The bonds, which mature on January 1, 2013, pay interest semiannually on January 1 and July 1. Ming used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Ming's December 31, 2008 balance sheet, the carrying value of the bonds is
Answer choices
A. $109,600.
B. $112,000
C. $113,600.
D. $110,880.
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall, Foster Horngren, Data Horngren
3rd Canadian Edition
0130355801, 978-0130355805
