Multiple Choice
On January 1,2010,a corporation issued a $400,000,12% bond.The interest is payable semi-annually on June 30 and December 31.The issue price was $413,153 based on a 10% effective (market) interest rate.Assuming the effective-interest method of amortization is used,what is the book value of the bond liability on December 31,2010 (to the nearest dollar) ?
A) $400,000
B) $413,320
C) $406,302
D) $407,432
Correct Answer:
Verified
Correct Answer:
Verified
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