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Reds Corporation issues $550,000, 10% contractual rate, 5-year maturity bonds on jan 1, 2020 for $489,000 (bonds payable of $550,000 less discount of $61,000 =
Reds Corporation issues $550,000, 10% contractual rate, 5-year maturity bonds on jan 1, 2020 for $489,000 (bonds payable of $550,000 less discount of $61,000 = $489,000). Using the straight-line amortization method, what is the carrying value of the bonds one year later on Jan 1, 2021?
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