On January 1, Year 1, Weller Company issued bonds with a $260,000 face value, a stated rate of interest of 10.00%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 8.00%. Interest is paid annually on December 31.Assuming Weller issued the bonds for $280,640, what is the carrying value of the bonds on the December 31, Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
A. $273,258
B. $286,000
C. $277,091
D. $269,119
Answer: D
You might also like to view...
Pelican Company issued $200,000 of 20-year, 6 percent bonds at 98 on one of its semiannual interest dates. The straight-line method of amortization is to be used. After seven years, what is the carrying value of the bonds?
A) $196,700 B) $197,400 C) $198,600 D) $199,300
The arrangement of positions in the organization into work units or departments and the interrelationships among these units or departments is known as ______.
a. organizational charting b. organizational engineering c. organizational design d. organizational management
A joint venture is an example of a ______.
a. transactional relationship b. strategic alliance c. collaborative relationship d. collective relationship
Compare the advantages and disadvantages of ownership of logistics assets. What factors should be considered when deciding whether to own or outsource the assets needed to execute the logistics function?
What will be an ideal response?