Question 20 Not yet answered Points out of 3 Flag question Quection 21 Not yet answered Points out of 3 1. question Which is FASB's preferred method to use when amortizing a bond discount or premium? Select one: O a. Dedining Balance-interest rate method of amortization O b. Straight-line method of amortization Oc Effective-interest method of amortization O d. Both straight-line and effective-interest rate methods of amortization are equally preferred. On January 1, Year 4, Martin Co. issued eight-year bonds with a face value of $4,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The market yield for bonds of similar risk and maturity is in. table values are Present value of 1 for 5 periods at 6%. Present value of 1 for 5 periods at 5%... Present value of 1 for 10 periods at 3%. Present value of 1 for 16 periods at 4%.. Present value of annuity for $ periods at 6%. Present value of annuity for 5 periods at 8%. Present value of anmaity for 16 periods at 3% Present value of annuity for 16 periods at 4% The selling price of the bonds is Select one O a $3,534,240, O b. $3,539,280. OC $3,558,240 Od $1,998,400. Oe None of these choices 12 627 540 .623 334 6.210 5.747 12.561 11.652