Sparks Company Received Proceeds of $634,500 on 10-Year, 8% Bonds

Multiple Choice

Sparks Company received proceeds of $634,500 on 10-year, 8% bonds issued on January 1, 2019.The bonds had a face value of $600,000, pay interest annually on December 31, and have a call price of 102.Sparks uses the straight-line method of amortization.What is the carrying value of the bonds on January 1, 2021?

A) $600,000
B) $627,600
C) $572,400
D) $631,050