Greco CoIssued Ten-Year Term Bonds on January 1,20x5,with a Face Value

question 17

Multiple Choice

Greco Co.issued ten-year term bonds on January 1,20x5,with a face value of $1,600,000.The face interest rate is 6 percent and interest is payable semi-annually on June 30 and December 31.The bonds were issued for $1,381,920 to yield an effective annual rate of 8 percent.The effective interest method of amortization is to be used.The carrying value of the bonds payable on the December 31,20x5,balance sheet date should be

• A)$1,392,824.
• B)$1,396,472.
• C)$1,396,764.
• D)$1,381,920.

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Definitions:

Serve The Same Customers

The practice of targeting and catering to the same client base by different businesses or services.

FLSA

The Fair Labor Standards Act, a U.S. law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.

Nonexempt Employee

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