Discount-Mart Issues $16 million in bonds on January 1, 2024. The bonds have a seven-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: 12/31/2024 06/30/2025 12/31/2025 Interest Cash Paid Expense Date 01/01/2024 06/30/2024 $800,000 $870,768 $70,768 800,000 875,014 75,014 800,000 879,515 79,515 800,000 884,286 84,286 What is the carrying value of the bonds as of December 31, 2025? Show Transcribed Text Multiple Choice What is the carrying value of the bonds as of December 31, 2025? $14,822,385 $16,422.305 Increase in Carrying Value $14,658,584 $14,738,099 3 Carrying Value $14,512,802 14,583,570 14,658,584 14,738,099 14,822,385 C

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Discount-Mart Issues $16 million in bonds on January 1, 2024. The bonds have a seven-year term and pay interest semiannually on June 30
and December 31 each year. Below is a partial bond amortization schedule for the bonds:
Interest
Cash Paid Expense
Date
01/01/2024
06/30/2024 $800,000 $870,768
12/31/2024
$70,768
800,000
875,014
75,014
06/30/2025 800,000 879,515
79,515
12/31/2025
800,000 884,286
84,286
What is the carrying value of the bonds as of December 31, 2025?
Show Transcribed Text
Multiple Choice
What is the carrying value of the bonds as of December 31, 2025?
$14,822,385
$16,422.385
Increase in
Carrying Value
$14,658,584
$14,738,099
C
Carrying
Value
$14,512,802
14,583,570
14,658,584
14,738,099
14,822,385
3
Transcribed Image Text:Discount-Mart Issues $16 million in bonds on January 1, 2024. The bonds have a seven-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Interest Cash Paid Expense Date 01/01/2024 06/30/2024 $800,000 $870,768 12/31/2024 $70,768 800,000 875,014 75,014 06/30/2025 800,000 879,515 79,515 12/31/2025 800,000 884,286 84,286 What is the carrying value of the bonds as of December 31, 2025? Show Transcribed Text Multiple Choice What is the carrying value of the bonds as of December 31, 2025? $14,822,385 $16,422.385 Increase in Carrying Value $14,658,584 $14,738,099 C Carrying Value $14,512,802 14,583,570 14,658,584 14,738,099 14,822,385 3
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