Dakota company issued 700000 of 6 5-year bonds at 98 with


Question - Dakota Company issued $700,000 of 6%, 5-year bonds at 98, with interest paid annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?

a. $686,000

b. $683,200

c. $688,800

d. $697,200

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Dakota company issued 700000 of 6 5-year bonds at 98 with
Reference No:- TGS02874609

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)