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On January 1, 2013, the Keller Co

Question 18

Multiple Choice

On January 1, 2013, the Keller Co. issued $140,000 of 20-year 8% bonds for $172,000. Interest was payable annually. The effective yield was 6%. The effective interest method was used to amortize the premium. What amount of premium would be amortized for the year ended December 31, 2013?


A) $ 827.20
B) $1,804.80
C) $ 880.00
D) $ 453.20

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