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:

Spinal cord

The cylindrical bundle of nerve fibers and associated tissue that is enclosed in the spine and connects nearly all parts of the body to the brain.

Frontal lobe

The part of the brain located at the front of each cerebral hemisphere, associated with reasoning, motor skills, higher level cognition, and expressive language.

Motor activity

Physical movements and actions generated by the body's muscle system.

Brain

An organ of the central nervous system in vertebrates, located in the skull and functioning as the primary center for controlling bodily activities and cognitive functions.