Parsons Company Issued at 97 Bonds with a Face Value

question 112

Multiple Choice

Parsons Company issued at 97 bonds with a face value of $500,000. As a result of the issue:

• A)Assets and liabilities would both increase by $500,000.
• B)Assets would increase by $485,000 and liabilities would increase by $500,000.
• C)Assets and liabilities would both increase by $485,000.
• D)Assets would increase by $500,000, and liabilities would increase by $485,000.

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