On January 1,2014,Madrid Corp

question 74

Multiple Choice

On January 1,2014,Madrid Corp.issued 2,000 of its 9 percent,$1,000 bonds at 95.Interest is payable semiannually on July 1 and January 1.The bonds mature on January 1,2024.Madrid paid bond issue costs of $80,000,which are appropriately recorded as a deferred charge.Madrid uses the straight-line method of amortizing bond discount and bond issue costs.On Madrid's December 31,2014,balance sheet,how much would be shown as the carrying amount of the bonds payable?

• A) $2,110,000
• B) $2,090,000
• C) $1,982,000
• D) $1,910,000

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