Bonds with a stated interest rate of 9% and a face value totaling $600,000 were issued for $624,000 on January 1,2016,when the market interest rate was 8%.The company uses effective-interest bond amortization.
Required:
Determine the carrying value of the bonds at December 31,2017.

Question

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The Answer of Bonds with a stated interest rate of 9% and a face value totaling $600,000 were issued for $624,000 on January 1,2016,when the market interest rate was 8%.The company uses effective-interest bond amortization.
Required:
Determine the carrying value of the bonds at December 31,2017.

Bonds with a Stated Interest Rate of 9% and a Face