On January 1, 2016, the Keller Co issued $140,000 of 20-year 8% bonds for $172,000. Interest was payable annually. The effective yield was 6%. The effective interest method was used to amortize the premium. What amount of premium would be amortized for the year ended December 31, 2016?

A) $827.20
B) $1,804.80
C) $880.00
D) $453.20


C

Business

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