Use the Following Information to Solve the Following Questions

question 39

Multiple Choice

Use the following information to solve the following questions:
On July 1, 2020, Harry Ltd. purchased $ 200,000 (par value) of Prince's 8% bonds. Because the market rate was 9%, Harry purchased them for $ 186,992. The bonds pay interest semi-annually on December 31 and June 30. Harry uses the amortized cost model and the effective-interest method to recognize interest income on bond investments.
-Rounding values to the nearest dollar (if necessary) , the bond discount to be amortized on December 31, 2020 is

• A) $ 8,415.
• B) $ 8,000.
• C) $ 7,585.
• D) $ 415.

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Definitions:

Later Stages

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Assessment Technique

A systematic method for evaluating or measuring a particular characteristic, ability, or condition.

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A psychoanalytic technique in which a patient verbalizes thoughts as they come to mind, without censorship or filtering, to uncover unconscious processes.