On January 1, Weatherholt Inc.issued $5,000,000, 9% bonds for $4,695,000.The market rate of interest for these bonds is 10%.Interest is payable annually on December 31.Jean Weatherholt uses the effective-interest method of amortizing bond discount.At the end of the first year, Weatherholt should report unamortized bond discount of
A)$274,500.
B)$285,500.
C)$258,050.
D)$255,000.

Question

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The Answer of On January 1, Weatherholt Inc.issued $5,000,000, 9% bonds for $4,695,000.The market rate of interest for these bonds is 10%.Interest is payable annually on December 31.Jean Weatherholt uses the effective-interest method of amortizing bond discount.At the end of the first year, Weatherholt should report unamortized bond discount of
A)$274,500.
B)$285,500.
C)$258,050.
D)$255,000.