On January 1,XYZ Corporation Issued $200,000 of 8%,5year Bonds When

Multiple Choice

On January 1,XYZ Corporation issued $200,000 of 8%,5year bonds when the market rate of interest was 6%.The bonds were issued for $216,849 and interest will be paid annually on December 31.How much premium amortization will XYZ record on the first interest payment date using the effective-interest method?

A) $0
B) $13,011
C) $16,000
D) $2,989