Report unamortized bond premium


Martinez Inc. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Martinez uses the effective-interest method of amortizing bond premium. At the end of the first year, Martinez should report unamortized bond premium of:

a) $185,130

b) $184,500

c) $173,550

d) $165,000

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Accounting Basics: Report unamortized bond premium
Reference No:- TGS061318

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