How to amortize any bond discount


On January 1, 2011, Steadman issues $250,000 of 10%, 12-year bonds at a price of 97.50. Six years later, on January 1, 2017, Steadman retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2016, the day before the purchase. The straight-line method is used to amortize any bond discount.How much does the company receive when it issues the bonds on January 1, 2011?

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Accounting Basics: How to amortize any bond discount
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