Blanding Company Issues $1 000 000 of 8%, 10- Year

question 8

Multiple Choice

Blanding Company issues $1 000 000 of 8%, 10- year debentures at 98 on 28 February 2014. The debenture pays interest on 28 February and 31 August. The market rate of interest on the issue date was 10%. Assume Blanding uses the straight- line method for amortisation. What net balance will be reported for the debentures on the balance sheet on 31 August 2014?

• A)$1 000 000
• B)$979 000
• C)$980 000
• D)$981 000

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Definitions:

Favorable Perceptions

Positive interpretations or views held by individuals about something or someone, often influenced by personal beliefs or experiences.

Pay Checks

Regular payments made by employers to employees as compensation for their work.

Different Behaviors

Variations in actions or reactions of individuals, often influenced by internal or external factors.

Beliefs

Strongly held notions or convictions that individuals hold to be true, influencing their thoughts, feelings, and actions.