On January 1,2010,Jacob Issues $600,000 of 11%,15-Year Bonds at a Price

question 130

Multiple Choice

On January 1,2010,Jacob issues $600,000 of 11%,15-year bonds at a price of 102½.Six years later,on January 1,2016,Jacob retires 30% of these bonds by buying them on the open market at 98½. 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)$472,000
• B)$531,076
• C)$584,924
• D)$609,000
• E)$600,000

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