On January 1, 2023, Always Corporation issues $3,200,000, 5-year, 10% bonds for $3,110,000. Interest is paid semiannually on January 1 and July 1. Always Corporation uses the straight-line method of amortization. The company's fiscal year ends on December 31. The amount of discount amortized on July 1, 2023 is: OA. $90,000. OB. $4,500. C. $9,000. OD. $18,000.
On January 1, 2023, Always Corporation issues $3,200,000, 5-year, 10% bonds for $3,110,000. Interest is paid semiannually on January 1 and July 1. Always Corporation uses the straight-line method of amortization. The company's fiscal year ends on December 31. The amount of discount amortized on July 1, 2023 is: OA. $90,000. OB. $4,500. C. $9,000. OD. $18,000.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 3MC: On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9%...
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![On January 1, 2023, Always Corporation issues $3,200,000, 5-year, 10% bonds for $3,110,000. Interest is paid semiannually on January 1 and July 1. Always Corporation uses the straight-line method of amortization. The company's fiscal year ends on December 31. The
amount
of discount amortized on July 1, 2023 is:
OA. $90,000.
OB. $4,500.
C. $9,000.
OD. $18,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7b61659-f0b4-4ed0-938a-7038494cfdc9%2F82c4a252-42c7-4e75-bbab-2e42cabd203c%2F0dt1oo_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2023, Always Corporation issues $3,200,000, 5-year, 10% bonds for $3,110,000. Interest is paid semiannually on January 1 and July 1. Always Corporation uses the straight-line method of amortization. The company's fiscal year ends on December 31. The
amount
of discount amortized on July 1, 2023 is:
OA. $90,000.
OB. $4,500.
C. $9,000.
OD. $18,000.
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