Use the Following to Answer Questions

question 132

Multiple Choice

Use the following to answer questions
Victor Company issued bonds with a $250,000 face value and a 6% stated rate of interest on January 1,2016.The bonds carried a 5-year term and sold for 95.Victor uses the straight-line method of amortization.Interest is payable on December 31 of each year.
-The carrying value of the bond liability on the December 31,2018 balance sheet was:

• A)$241,000.
• B)$242,500.
• C)$237,500.
• D)$245,000.

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