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On July 1, 2016, Swifty Corporation issued 8% bonds in the face amount of $13900000, which...

On July 1, 2016, Swifty Corporation issued 8% bonds in the face amount of $13900000, which mature on July 1, 2022. The bonds were issued for $13280000 to yield 9%, resulting in a bond discount of $620000. Swifty uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2018, Swifty's unamortized bond discount should be

Entry field with incorrect answer

$446112.
$475712.
$463712.
$433712.
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Answer #1

Discount - $620000 face value = $13900000. market rate = 9.1. coupon rate .=84 June 30 2017 = Interest paid in cash 13900000

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