The current carrying value of Kruger's $1,600,000 face value bonds is $1,594,000. If the bonds are retired at 102, what would be the amount Kruger would pay its bondholders?
A) $1,594,000
B) $1,600,000
C) $1,608,000
D) $1,632,000

Question

Quizplus · Accepted Answer

The bonds are retired at 102% of the face value, so Kruger would pay 102% of $1,600,000, which is $1,632,000.

The Current Carrying Value of Kruger's $1,600,000 Face Value Bonds