The Amazing Widget Company Issues $508,000 of 8%,10-Year Debentures at 105

question 55

Multiple Choice

The Amazing Widget Company issues $508,000 of 8%,10-year debentures at 105 on 30 April 2017.The debentures pay interest on 30 April and 31 October.Assume that the company uses the straight-line method for amortisation.Calculate the net balance that will be reported for the debentures on the balance sheet on 31 October 2017.

• A)$508,000
• B)$532,130
• C)$534,670
• D)$533,400

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