The amount of discount amortized on July 1,2019 is
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 8RE
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Question
On January 1,2018 always corporation issues 3200,000 5 year 12% bonds for $3,140,000. Interest is paid semi annually on January 1 and July 1. Always corporation used the straight line method of amortization. The company's fiscal year ends on December 31. The amount of discount amortized on July 1,2019 is
-12,000
-60,000
-6,000
3,000
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