On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. 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. $399,800.
B. $400,000.
C. $400,200.
D. $395,800.
E. $396,200.
Answer: E
Business
You might also like to view...
Debits are good and credits are bad in financial terms
a. True b. False Indicate whether the statement is true or false
Business
Analysis of interobject similarity can be conducted by cluster analysis and multiple discriminant analysis
Indicate whether the statement is true or false
Business
What is the difference between incidental damages and consequential damages?
Business
"Probate" is best-defined as:
A) choosing investments for a trust fund at death B) selecting the beneficiary of a trust fund after death of the donor C) administration of an estate following death of an individual D) supervising the transfer of property at death
Business