On January 1,2010,Tonika Corporation Issued a Four-Year,$10,000,7% Bond

Multiple Choice

On January 1,2010,Tonika Corporation issued a four-year,$10,000,7% bond.The interest is payable annually each December 31.The issue price was $9,668 based on an 8% effective interest rate.Assuming effective-interest amortization is used,what is the book value of the bonds as of December 31,2010 (to the nearest dollar) ?

A) $8,968
B) $9,945
C) $9,641
D) $9,741