Question: On January 1 , 2 0 2 0 , Solis Co . issued its 1 0 % bonds in the face amount of $ 8

On January 1,2020, Solis Co. issued its 10% bonds in the

On January 1,2020, Solis Co. issued its 10% bonds in the face amount of $8,000,000, which mature on January 1,2030. The bonds were issued for $9,080,000 to yield 8%, resulting in bond premium of $1,080,000. Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31,2020, Solis's adjusted unamortized bond premium should be
a. $1,080,000.
b. $1,006,400.
c. $972,000.
d. $812,000.
face amount of $8,000,000, which mature on January 1,2030. The bonds were

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