On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a purchase price of 96. At the time of purchase the market rate of interest was 8%. Everjoy Company, whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity. What s the carrying value (amortized cost) of the bond that Everjoy Company would report on October 1, 020? O $78,144 $77,120 $79,488 $77,472
On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a purchase price of 96. At the time of purchase the market rate of interest was 8%. Everjoy Company, whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity. What s the carrying value (amortized cost) of the bond that Everjoy Company would report on October 1, 020? O $78,144 $77,120 $79,488 $77,472
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a
purchase price of 96. At the time of purchase the market rate of interest was 8%. Everjoy Company,
whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the
date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity. What
is the carrying value (amortized cost) of the bond that Everjoy Company would report on October 1,
2020?
O $78,144
O $77,120
O $79,488
O $77,472
O None of the above.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0dcb79de-cb64-4da2-bfc7-5f074987434d%2Fa810dcc8-a1a8-43a7-b5fd-65e22ba3f13a%2Fa9q2sfuj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On April 1, 2020 Everjoy Company purchased $80,000 of Miller Corporation's 6% bonds at a
purchase price of 96. At the time of purchase the market rate of interest was 8%. Everjoy Company,
whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the
date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity. What
is the carrying value (amortized cost) of the bond that Everjoy Company would report on October 1,
2020?
O $78,144
O $77,120
O $79,488
O $77,472
O None of the above.
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