Question: On 1 January 2013, Mary Inc issues $1,000,000 face value, 10-year bonds with annual interest rate of 5% to be paid each 31 December. The

On 1 January 2013, Mary Inc issues $1,000,000 face value, 10-year bonds with annual interest rate of 5% to be paid each 31 December. The market interest rate is 4%.

Using the effective interest rate method of amortization, Mary Inc should record when it closes its annual book on Dec 31, 2015

Group of answer choices

a carrying amount of 1,081,109 on Dec 31, 2015

an interest expense of 42,974 on Dec 31, 2015

a cash disbursement of 43,244 on Dec 31, 2015

a carrying amount of 1,060,021 on Dec 31, 2015

an amortization of discount of 7,307 on Dec 31, 2015

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