On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market rate of interest for these bonds is 79%. Interest is payable annually on December 31 (note that these bonds are ANNUAL bonds). Bramble uses the effective-interest method of amortizing bond premium. At the end of the second year, Bramble should report unamortized bond premium of Group of answer choices 1. $722.000 2. $716,556 3. $5691,933 4. $319,093
On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market rate of interest for these bonds is 79%. Interest is payable annually on December 31 (note that these bonds are ANNUAL bonds). Bramble uses the effective-interest method of amortizing bond premium. At the end of the second year, Bramble should report unamortized bond premium of Group of answer choices 1. $722.000 2. $716,556 3. $5691,933 4. $319,093
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market
rate of interest for these bonds is 79%. Interest is payable annually on December 31 (note
that these bonds are ANNUAL bonds). Bramble uses the effective-interest method of
amortizing bond premium. At the end of the second year, Bramble should report
unamortized bond premium of Group of answer choices
1. $722,000
2. $716,556
3. $5691,933
4. $319,093](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c53329f-0d1f-45df-a981-824ae7f25ee1%2F3493b50c-a91b-4f61-9d04-b9c3c620dcfa%2F8358amh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market
rate of interest for these bonds is 79%. Interest is payable annually on December 31 (note
that these bonds are ANNUAL bonds). Bramble uses the effective-interest method of
amortizing bond premium. At the end of the second year, Bramble should report
unamortized bond premium of Group of answer choices
1. $722,000
2. $716,556
3. $5691,933
4. $319,093
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