On January 1, Year 1, Wayne Company Issued Bonds with a Face

question 64

Multiple Choice

On January 1, Year 1, Wayne Company issued bonds with a face value of $810,000, a 11% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums. Assuming Wayne issued the bonds for 104, what is the carrying value of the bonds on the December 31, Year 1 balance sheet?

• A)$839,160
• B)$813,240
• C)$845,640
• D)$842,400

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Definitions:

Stabilization Policy

Government policies aimed at stabilizing the economy by reducing fluctuations in production, employment, and prices.

Expected Effects

The anticipated outcomes or results that are predicted to occur as a consequence of a particular action or set of conditions.

M

In the context of economics, M often refers to money supply, which includes various types of money in circulation like cash and bank deposits.

Q

In economics, often denotes quantity, such as the amount of goods and services produced or consumed.