Question: 11. Summit Co. issued $480,000 face value, ten-year, 5% bonds on December 31, Year 1. The bonds pay interest annually and were sold to yield

11. Summit Co. issued $480,000 face value, ten-year, 5% bonds on December 31, Year 1. The bonds pay interest annually and were sold to yield 6%. Present value factors are as follows: 5% 6% Present value of $1, ten periods 0.61391 0.55839 Present value of ordinary annuity of $1, ten periods 7.72173 7.36009 Present value of annuity due of $1, ten periods 8.10782 7.80169 What amount of long-term liability should Summit report on December 31, Year 1, for this sale? a. $455,268 b. $479,998 c. $517,063 d. $444,669

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