Multiple Choice
On January 1,2016,Sheffield Co.issued bonds with a face value of $200,000,a term of ten years,and a stated interest rate of 6%.The bonds were issued at 105,and interest is payable each December 31.Sheffield uses the straight-line method to amortize the bond discount.The carrying value of the bonds that would be reported on the December 31,2019 balance sheet is:
A) $204,000.
B) $200,000.
C) $205,000.
D) $206,000.
Correct Answer:
Verified
Correct Answer:
Verified
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