On January 1, 2014, $2,000,000, 10-year, 10% bonds, were issued for $1,940,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the monthly amortization amount is
A) $19,400.
B) $6,000.
C) $1,616.
D) $500.

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The Answer of On January 1, 2014, $2,000,000, 10-year, 10% bonds, were issued for $1,940,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the monthly amortization amount is
A) $19,400.
B) $6,000.
C) $1,616.
D) $500.

On January 1, 2014, $2,000,000, 10-Year, 10% Bonds, Were Issued