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The following partial amortization schedule is available for Sandhill Co. who sold $638000, 5-year, 10% bonds on January 1, 2020 for $663000 and uses annual
The following partial amortization schedule is available for Sandhill Co. who sold $638000, 5-year, 10% bonds on January 1, 2020 for $663000 and uses annual straight-line amortization.
BOND AMORTIZATION SCHEDULE | |||||
Interest Periods | Interest to be paid | Interest expense | Premium Amortization | Unamortized Premium | Bond Carrying Value |
---|---|---|---|---|---|
January 1, 2020 | $25000 | $663000 | |||
January 1, 2021 | (i) | (ii) | (iii) | (iv) | (v) |
Which of the following amounts should be shown in cell (iii)?
$25000
$5000
$12500
$2500
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