On January 1, a company issued and sold a $390,000, 4%, 10-year bond payable, and received proceeds of $381,000. 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 first interest payment is:

A. $380,550.
B. $390,450.
C. $389,550.
D. $381,450.
E. $390,000.


Answer: D

Business

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