Bonds that were authorized on January 1, 2011, and that pay interest on January 1 and July 1 of each year were issued on October 1, 2011. If the issuer's accounting year ends on December 31, how many months would any discount or premium be amortized in 2011?

Question

Quizplus · Accepted Answer

The bonds were issued on October 1, 2011, and the accounting year ends on December 31, 2011. Therefore, the discount or premium would be amortized for 3 months in 2011 (October, November, and December).

Bonds That Were Authorized on January 1, 2011, and That