Question: how de we get the answer? thanks 8. Really Really Cheap Vacations Ltd. (RRCV) issued $4,000,000 of 5 year, 4% bonds dated January 1 ,

how de we get the answer? thanks

8. Really Really 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? a. $3,970,000. b. $4,000,000. c. $3,980,000. d. $3,900,000. e. none of the above but $

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