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Garcia Company Issued $600,000 of 8%, 5-Year Bonds at 106

Question 141

Multiple Choice

Garcia Company issued $600,000 of 8%, 5-year bonds at 106, with interest paid annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?


A) $636,000
B) $632,400
C) $628,800
D) $639,600

Correct Answer:

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