Given the following information from an amortization table,compute the effective interest expense,discount amortization,and the carrying value for the next line of the table:

Question

Quizplus · Accepted Answer

To calculate the effective interest for the next line, we add the interest expense ($53,340) to the discount amortization from the current line ($5,340) to get $58,680. We subtract this from the cash paid ($11,320,000/20 = $566,000), which gives us the new carrying value of $681,628. Therefore, the correct answer is B.

Given the Following Information from an Amortization Table,compute the Effective