On 2 January 2014, Mahoney Sales Issued $10 000 in Debentures

Multiple Choice

On 2 January 2014, Mahoney Sales issued $10 000 in debentures for $10 900. They were 5- year debentures with a stated rate of 4%, and pay half- yearly interest payments. Mahoney Sales uses the straight- line method to amortise the debenture premium. After the first interest payment on 30 June 2014, what was the debenture carrying amount?

A) $10 810
B) $9 190
C) $9 810
D) $9 100