Homework Answers
Ans: ( A) $ 2850
Explanation:
1) Amount of Bond Discount:
= $ 950,000 - $ 921,500
= $ 28,500
2) No of period:
= 5 year * 2 ( semi annual)
= 10
3) Semi annual amount of bond discount amortization under the straight-line method will be:
= $ 28500 ÷ 10
= $ 2850
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