In January 1 20x1 abc company issued a 1000000 10 year bond with a stated interest rate of 9% payable annually every December 31st the market interest rate is 7% the bonds price is 1140160.
In January 1 20x1 abc company issued a 1000000 10 year bond with a stated interest rate of 9% payable annually every December 31st the market interest rate is 7% the bonds price is 1140160.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 11MC: When a bond sells at a discount, the carrying value ________ after each amortization entry. A....
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In January 1 20x1 abc company issued a 1000000 10 year bond with a stated interest rate of 9% payable annually every December 31st the market interest rate is 7% the bonds price is 1140160.
![liability be on December
31, 20X1?
m) If they used straight-
line amortization, what
will be the balance of the
discount (or premium)
after the last interest
payment is made?
[Choose ]
n) If they use straight line [Choose]
amortization, what will be
the bond's net liability
after the last interest
payment and just before
the bond is paid off?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fadd942ee-f79e-4a36-9f00-66fe52871351%2Fa8393c60-e464-45da-a39d-6511087398b8%2F71p1mz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:liability be on December
31, 20X1?
m) If they used straight-
line amortization, what
will be the balance of the
discount (or premium)
after the last interest
payment is made?
[Choose ]
n) If they use straight line [Choose]
amortization, what will be
the bond's net liability
after the last interest
payment and just before
the bond is paid off?
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