Five years ago, Ella's issued 10-year $1,000,000 bonds. At issuance, the bonds had a discount of $80,000.

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Five years ago, Ella's issued 10-year $1,000,000 bonds. At issuance, the bonds had a discount of $80,000. Ella's uses the straight-line method of amortization.

What is the carrying amount of the bonds today (after five full years)?

a. $1,000,000

b. $920,000

c. $960,000

d. $1,040,000

e. None of the other alternatives are correct

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Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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Posted Date: May 11, 2022 05:45 AM

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Five years ago, Ella's issued 10-year $1,000,000 bonds. At issuance, the bonds had a discount of $80,000.

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Expert Answer:

Answer C 960000 Explanation Amort... View the full answer

Accounting Principles Volume 1

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