On January 1, 2020 Limoyo Corporation Purchased 600 of

question 57

Multiple Choice

On January 1, 2020 Limoyo Corporation purchased 600 of $ 1,000 face value, 8% bonds of Leon Company, for $ 553,668, to yield 10%. The bonds, which mature on January 1, 2025, pay interest semi-annually on January 1 and July 1. Assuming that Limoyo uses the straight-line method of amortization and that the bonds are accounted for under the amortized cost method, the net carrying value of the bonds should be shown on Limoyo's December 31, 2020, statement of financial position at

• A) $ 557,351.
• B) $ 562,934.
• C) $ 600,000.
• D) $ 553,668.