The Following Partial Amortization Schedule Is Available for Courtney Company

question 18

Multiple Choice

The following partial amortization schedule is available for Courtney Company who sold $500,000, five-year, 10% bonds on January 1, 2014 for $520,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (v) ?

• A) $524,000
• B) $522,000
• C) $516,000
• D) $518,000

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Definitions:

Current Ratio

A financial metric that compares a company's current assets to its current liabilities, indicating how well it can cover its short-term obligations.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. tax that funds Social Security and Medicare, deducted from employees' paychecks and matched by employers.

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.