On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash interest annually on December 31. The company retired 30% of the bonds on June 1, 2020, when the bonds were selling at 90 plus accrued interest. Assume the straight-line interest method is used to amortize the bond discount. What is the carrying value of the bonds to be redeemed just prior to the bond redemption? Select one: a. $84,000 b. $80,640 c. $80,808 d. $80,780
On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash interest annually on December 31. The company retired 30% of the bonds on June 1, 2020, when the bonds were selling at 90 plus accrued interest. Assume the straight-line interest method is used to amortize the bond discount. What is the carrying value of the bonds to be redeemed just prior to the bond redemption? Select one: a. $84,000 b. $80,640 c. $80,808 d. $80,780
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash interest annually on December 31. The company retired 30% of the bonds on June 1, 2020, when the bonds were selling at 90 plus accrued interest. Assume the
Select one:
a.
$84,000
$84,000
b.
$80,640
$80,640
c.
$80,808
$80,808
d.
$80,780
$80,780
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