On January 1, Lincoln Corp. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Lincoln uses the effective-interest method of amortizing bond premium. At the end of the first year, Lincoln should report bonds payable of: Select one: O a. $3,165,000 O b. $3,184,500 O c. $3,185,130 O d. $3,173,550 Clear my.choice

On January 1, Lincoln Corp. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Lincoln uses the effective-interest method of amortizing bond premium. At the end of the first year, Lincoln should report bonds payable of: Select one: O a. $3,165,000 O b. $3,184,500 O c. $3,185,130 O d. $3,173,550 Clear my.choice

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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