On January 1,2013,Jacob Issues $800,000 of 9%,13-Year Bonds at a Price

question 34

Multiple Choice

On January 1,2013,Jacob issues $800,000 of 9%,13-year bonds at a price of 96½.Six years later,on January 1,2019,Jacob retires 20% of these bonds by buying them on the open market at 105½.All interest is accounted for and paid through December 31,2018,the day before the purchase.The straight-line method is used to amortize any bond discount or premium.What is the carrying value of the bond on January 1,2019?

• A)$772,000
• B)$831,076
• C)$784,924
• D)$277,000
• E)$800,000

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Definitions:

Group Decision Making

The process whereby multiple individuals come together to analyze problems, consider solutions, and agree on a course of action.

Transformational Leaders

Individuals who inspire and motivate followers to achieve extraordinary outcomes by transforming their beliefs and values.

Transactional Leaders

Leaders who focus on the exchanges between themselves and their followers, using rewards and punishments to achieve organizational goals.

Exchanges

Transactions or communications between individuals or entities.