207. Dart Company issued $600,000 of 8%, 5-year bonds at 105, with interest paid annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year? A) $630,000 B) $627,000 C) $624,000 D) $633,000

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The premium is $600,000 x 5% = $30,000 per year. The premium amortization per year is $30,000 ÷ 5 = $6,000. After one year, the carrying value of the bond will be $624,000 ($600,000 + $30,000 - $6,000).