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Morales Company Issued $800,000 of 8%, 5-Year Bonds at 106

Question 10

Multiple Choice

Morales Company issued $800,000 of 8%, 5-year bonds at 106, which pay interest annually.Assuming straight-line amortization, what is the carrying value of the bonds after one year?


A) $848,000
B) $843,200
C) $838,400
D) $852,800

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