On January 1, Patterson Inc. issued $5,000,000,9% bonds for $4,695,000.The market rate of interest for these bonds
Question:
On January 1, Patterson Inc. issued $5,000,000,9% bonds for $4,695,000.The market rate of interest 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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Related Book For 
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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