Sparks Company Received Proceeds of $634,500 on 10-Year, 8% Bonds

question 230

Multiple Choice

Sparks Company received proceeds of $634,500 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $600,000, pay interest annually on December 31st, and have a call price of 102. Sparks uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2018?

• A)$600,000
• B)$627,600
• C)$572,400
• D)$631,050

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Definitions:

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A system of marriage that allows men to have multiple wives.

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A decade marked by significant cultural, political, and social changes worldwide, including movements for civil rights, environmentalism, and counter-culture.