236. Jarmin Company received proceeds of $377,000 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $400,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Jarmin uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2015? A)$400,000 B)$381,600 C)$395,400 D)$379,300

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The carrying value of the bonds on January 1, 2015 is $381,600. The bonds were issued at a discount of $23,000 ($400,000 - $377,000). The discount is amortized over the life of the bonds using the straight-line method. The annual amortization is $2,300 ($23,000 / 10 years). The carrying value of the bonds on January 1, 2015 is $381,600 ($377,000 + $2,300 * 2).