What is the carrying value of the bonds as of December 31, 2010?
A)$8,834,770.
B)$8,686,606.
C)$8,734,070.
D)$8,783,433.Semiannual effective rate = $345,639 / $8,640,967 = 4% Amortization Payment 4 = ($8,783,433 4%) $300,000 = $51,337
Carrying value = $8,783,433 + $51,337 = $8,834,770

Question

Quizplus · Accepted Answer

We are given the semiannual effective rate and amortization payment, so we can use the amortization formula to calculate the carrying value. Plugging in the numbers, we get a carrying value of $8,834,770. Therefore, the correct answer is choice A.

What Is the Carrying Value of the Bonds as of December