On January 1, a company issued and sold a $420,000, 3%, 10-year bond payable, and received proceeds of $415,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:
A. $415,500.
B. $415,250.
C. $414,750.
D. $420,000.
E. $419,750.
Answer: A
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