On January 1, 2020, $4,000,000, 5-Year, 10% Bonds, Were Issued

question 188

Multiple Choice

On January 1, 2020, $4,000,000, 5-year, 10% bonds, were issued for $4,240,000.Interest is paid annually on January 1.If the issuing corporation uses the straight-line method to amortize premium on bonds payable, the monthly amortization amount is

• A)$35,332.
• B)$48,000.
• C)$4,800.
• D)$4,000.

---

Definitions:

Discriminate

To treat someone differently or unfairly based on characteristics such as race, gender, age, or religion.

Public Acts

Laws or legislative decisions that are passed by government and apply to the public as a whole.

Preemptive Power

The authority to act before others to prevent an undesirable outcome, often used in legal or military contexts to describe preemptive measures or actions.

Necessary

Something essential or required for a particular purpose or outcome, often in the context of achieving goals or fulfilling conditions.