The Amazing Widget Company Issues $500,000 of 6%,10-Year Bonds at 103

question 28

Multiple Choice

The Amazing Widget Company issues $500,000 of 6%,10-year bonds at 103 on March 31,2014.The bond pays interest on March 31 and September 30.The market rate of interest on the issuance date was 4%.Assume the company uses the straight-line method for amortization.What net balance will be reported for the bonds on the balance sheet on September 30,2014?

• A) $500,000.
• B) $515,000.
• C) $514.250.
• D) $515,250.

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