On January 1,2010,Jacob Issues $800,000 of 9%,13-Year Bonds at a Price

question 144

Multiple Choice

On January 1,2010,Jacob issues $800,000 of 9%,13-year bonds at a price of 96½.Six years later,on January 1,2016,Jacob retires 20% of these bonds by buying them on the open market at 105½.All interest is accounted for and paid through December 31,2015,the day before the purchase.The straight-line method is used to amortize any bond discount. What is the carrying value of the bond on January 1,2016?

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

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Definitions:

Silica Glass

A type of glass made primarily of silicon dioxide (SiO2), known for its transparency and chemical stability.

Heat Involved

The energy transfer between systems or objects with different temperatures, often involved in chemical reactions and physical processes.

Calorimeter

A device used to measure the heat absorbed or released during a chemical or physical process.

Ignition Source

A material or process that can release enough energy to start a combustion reaction.