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:

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Parent-Teacher Association

An organization composed of parents and teachers that aims to facilitate parental participation in schools and improve the educational environment.

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