Wayne Company issued bonds with a face value of $930,000, a 10% stated rate of interest, and a 10-year term. The bonds were issued on January 1, Year 1, and Wayne uses the straight-line method of amortization. Interest is paid annually on December 31.Assuming Wayne issued the bonds for 106, the carrying value of the bonds on the December 31, Year 1 balance sheet would be:
A. $980,220.
B. $991,380.
C. $935,580.
D. $985,800.
Answer: A
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