ER Issued for $2,060,000, Two Thousand of Its 9%, $1,000

question 17

Multiple Choice

ER issued for $2,060,000, two thousand of its 9%, $1,000 callable bonds.The bonds are dated January 1, 2019, and mature many years from now.Interest is payable semi-annually on January 1 and July 1.The bonds can be called by the issuer at $102 on any interest payment date after December 31, 2023.The unamortized bond premium was
$28,000 at December 31, 2021, and the market price of the bonds was $99 on this date.In its December 31, 2021, balance sheet, at what amount should GC report the carrying value of the bonds?

• A)$2,028,000
• B)$2,040,000
• C)$2,032,000
• D)$1,980,000
• E)Cannot answer; the bond term is not given

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Definitions:

Health Care

The maintenance or improvement of health via the prevention, diagnosis, treatment, recovery, or cure of diseases, illnesses, injuries, and other physical and mental impairments in people.

Dating Violence

A pattern of abusive or coercive behaviors used by one individual to exert power and control over another in the context of a dating relationship.

Gender

A social construct referring to roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Per Capita

A statistical measure that divides the total amount of something by the number of people in a population, often used to indicate average per person.