Presented Here Is a Partial Amortization Schedule for Graceland Company $\quad$

question 19

Multiple Choice

Presented here is a partial amortization schedule for Graceland Company who sold $200000 six year 10% bonds on January 1 2016 for $212000 and uses annual straight-line amortization. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { BOND AMORTIZATION SCHEDULE }$
$\begin{array}{|c|c|c|c|c|c|}\hline \text { Interest Period } & \begin{array}{c}\text { Interest } \\\text { Paid }\end{array} & \begin{array}{c}\text { Interest } \\\text { Expense }\end{array} & \begin{array}{c}\text { Premium } \\\text { Amortization }\end{array} & \begin{array}{c}\text { Unamortized } \\\text { Premium }\end{array} & \begin{array}{c}\text { Bond Carrying } \\\text { Value }\end{array} \\\hline \text { January 1,2016 } & & & & \$ 12,000 & \$ 212,000 \\\hline \text { January 1,2017 } & \text { (i) } & \text { (ii) } & \text { (iii) } & \text { (iv) } & \text { (v) }\\\hline\end{array}$ Which of the following amounts should be shown in cell (iv) ?

• A) $10800
• B) $6000
• C) $11400
• D) $10000

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Definitions:

Speaking Ability

The capacity to effectively express thoughts, feelings, and information through verbal language.

Accommodation

The process by which the eye changes optical power to maintain a clear image or focus on an object as its distance varies.

Conceptualization

The process of developing clear ideas or concepts about something, often involving abstract or complex thinking.

Sensorimotor Period

The stage in early childhood development, according to Piaget, from birth to about 2 years, where infants learn through interacting with their environment using their senses and motor activity.