Krause Corporation issued $2,600,000, 10-year, 5% bonds for $2,470,000 on January 1, 2019. Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. Krause's fiscal year ends on December 31. The amount of discount amortization on July 1, 2019, would be A. $130,000 B. $13,000 C. $6,500 D. $130,000
Krause Corporation issued $2,600,000, 10-year, 5% bonds for $2,470,000 on January 1, 2019. Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. Krause's fiscal year ends on December 31. The amount of discount amortization on July 1, 2019, would be A. $130,000 B. $13,000 C. $6,500 D. $130,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Krause
Corporation issued
$2,600,000,
10-year,
5%
bonds for
$2,470,000
on January 1,
2019.
Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization.
Krause's
fiscal year ends on December 31. The amount of discount amortization on July 1,
2019,
would be$130,000
$13,000
$6,500
$130,000
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