On January 1, 2009, $1,000,000, 5-year, 10% bonds, were issued for $960,000. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the semiannual amortization amount is

A) $8,000.
B) $6,000.
C) $4,000
D) $5,000


C

Business

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