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Darren Company Issued $8,000 of 8% Bonds on January 1

Question 121

Multiple Choice

Darren Company issued $8,000 of 8% bonds on January 1, 2010, at a discount of $940. The market rate of interest on the issue date was 10%. The carrying value of the bonds on December 31, 2010 is


A) $6,994.
B) $7,060.
C) $8,940.
D) $7,126.

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