On January 1, 2016, Sharpsburg, Inc.issued $400,000, 10-year, 10% bonds for $354,200.The bonds pay interest on June 30 and December 31.The market rate is 12%.What is the carrying value of the bonds at the end of the ten years?
A) $400,000
B) $480,000
C) $380,000
D) $354,200
Correct Answer:
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