Report unamortized bond discount


On January 1,Patterson Inc. issued $5,000,000,9% bonds for $4,695,000.The market rate of intrest for these bonds is 10%.Interest is payable annually on December 31.Patterson uses the effective-interest of amortizing bond discount.At the end of the first year,Patterson should report unamortized bond discount of ?

A)$274,500

B)$285,500

C)$258,050

D)$255,000

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Accounting Basics: Report unamortized bond discount
Reference No:- TGS067050

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