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

question 123

Multiple Choice

Presented here is a partial amortization schedule for Graceland Company who sold $100000 five year 10% bonds on January 1 2016 for $108000 and uses annual straight-line amortization. $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { BOND AMORTIZATION SCHEDULE }$
$\begin{array}{|c|c|c|c|c|c|}\hline\text { Interest Period } & \begin{array}{c}\text { Interest } \\\text { Paid }\end{array} & \begin{array}{c}\text { Interest } \\\text { Expense }\end{array} & \begin{array}{c}\text { Premium } \\\text { Amortization }\end{array} & \begin{array}{c}\text { Unamortized } \\\text { Premium }\end{array} & \begin{array}{c}\text { Bond Carrying } \\\text { Value }\end{array} \\\hline \text { January 1,2016 } & & & & \$ 8,000 & \$ 108,000 \\\hline \text { January 1,2017 } & \text { (i) } & \text { (ii) } & \text { (iii) } & \text { (iv) } & \text { (v) }\\\hline\end{array}$ Which of the following amounts should be shown in cell (i) ?

• A) $10800
• B) $11600
• C) $10000
• D) $2000

---

Definitions:

Constructive Dilemma (CD)

A form of argument in which, from two conditional statements and the affirmation of their antecedents, one infers the affirmation of their consequents.

Atomic Sentences

Simple sentences that cannot be broken down into smaller sentences without losing meaning.

Truth Table

A tabular method for representing the logical relationships of statements or propositions by showing every possible combination of truth values.

Atomic Sentences

Fundamental sentences that do not contain any logical connectives and express a basic claim that can be true or false.