On January 1, 2013, Zooland Enterprises sold 8%, 20-year bonds with a face amount of $1,500,000 for $1,440,000. Interest is payable semiannually on July 1 and January 1.
Instructions
Calculate the carrying value of the bond at December 31, 2013 and 2014.Assume straight-line amortization.

Question

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The Answer of On January 1, 2013, Zooland Enterprises sold 8%, 20-year bonds with a face amount of $1,500,000 for $1,440,000. Interest is payable semiannually on July 1 and January 1.
Instructions
Calculate the carrying value of the bond at December 31, 2013 and 2014.Assume straight-line amortization.

On January 1, 2013, Zooland Enterprises Sold 8%, 20-Year Bonds