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? 

Answer rating: 100% (QA)

Calculating the Amortized Cost of Bonds Payable for RRCV Steps Calculate the discount on issuance Fa... View the full answer