Reelly Reelly Cheap Vacations Ltd. (RRCV) issued $4,000,000 of 5 year, 4% bonds dated January 1, 2011
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Question:
Reelly Reelly Cheap Vacations Ltd. (RRCV) issued $4,000,000 of 5 year, 4% bonds dated January 1, 2011 with interest payable January 1 and July 1 each year. The proceeds realized from the bond issue was $3,900,000 less $50,000 in bond issue costs. RRCV year end is December 31 and it uses ASPE with straight line amortization of bond premium/discounts, and values bonds at amortized cost on its financial statements.
At December 31, 2014, what is the amortized cost of the bonds payable on RRCV's balance sheet?
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
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