The Amazing Widget Company Issues $500 000 of 6%, 10-

Multiple Choice

The Amazing Widget Company issues $500 000 of 6%, 10- year debentures at 103 on 31 March 2014. The debenture pays interest on 31 March and 30 September. The market rate of interest on the issue date was 4%. Assume the company uses the straight- line method for amortisation. What net balance will be reported for the debentures on the balance sheet on 30 September 2014?

A) $500 000
B) $515 250
C) $514 250
D) $515 000