Multiple Choice
On January 1, 2014, $2,000,000, 5-year, 10% bonds, were issued for $2,120,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize premium on bonds payable, the monthly amortization amount is
A) $17,666.
B) $24,000.
C) $2,400.
D) $2,000.
Correct Answer:
Verified
Correct Answer:
Verified
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