On January 1, 2015, Carter Sales Issued $15,000 in Bonds

question 83

Multiple Choice

On January 1, 2015, Carter Sales issued $15,000 in bonds for $15,800. They were 8-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the bond premium. After the first interest payment on June 30, 2015, what was the bond carrying amount?

• A)$15,800
• B)$15,750
• C)$15,050
• D)$15,000

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Definitions:

Implied Warranty of Habitability

A legal doctrine that ensures rental properties meet basic living and safety standards.

Leased Premises

Property that is rented under a lease agreement, granting the tenant certain rights to use the property for a specified period.

Residential Purposes

Pertains to the use of property for living accommodations or dwelling rather than for commercial or industrial activities.

Qualified Fee Estate

A type of land ownership subject to certain conditions or limitations that must be met for full ownership rights to be retained.