Multiple Choice
On January 1, Weatherholt Inc.issued $5,000,000, 9% bonds for $4,695,000.The market rate of interest for these bonds is 10%.Interest is payable annually on December 31.Jean Weatherholt uses the effective-interest method of amortizing bond discount.At the end of the first year, Weatherholt should report unamortized bond discount of
A) $274,500.
B) $285,500.
C) $258,050.
D) $255,000.
Correct Answer:
Verified
Correct Answer:
Verified
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