On January 1, Vaughn Manufacturing issued $4900000, 9% bonds for $4595000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Vaughn uses the effective-interest method of amortizing bond discount. At the end of the first year, Vaughn should report unamortized bond discount of:
$256000.
$275500.
$259050.
$286500.

Answer rating: 100% (QA)

Bond discount ate the beginning face value issue price 4900000 45950... View the full answer