On January 1, $904,000, 5-year, 10% bonds, were issued for $876,880. Interest is paid semiannually on January 1 and July 1. If the issuingcorporation uses the straight-line method to amortize discount on bonds payable, the semiannual amortization amount isOa. $45,200Ob. $2,712Oc. $27,120Od. $5,424

SOLUTION- Semiannual Amortization Amount= 904000 * 10% * 6/12= 45200

On January 1, $904,000, 5-year, 10% bonds, were issued for $876,880. Interest is paid semiannually on January 1 and July 1. If the issuir corporation uses the straight-line method to amortize discount on bonds payable, the semiannual amortization amount is Oa. $45,200 Ob. $2,712 Oc. $27,120 Od. $5,424

On January 1, $904,000, 5-year, 10% bonds, were issued for $876,880. Interest is paid semiannually on January 1 and July 1. If the issuir corporation uses the straight-line method to amortize discount on bonds payable, the semiannual amortization amount is Oa. $45,200 Ob. $2,712 Oc. $27,120 Od. $5,424

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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