On January 1,2019,Anthony Corporation issued $1,000,000 of 6%,5-year bonds at 98,with interest paid annually.Using the straight-line amortization method,what is the carrying value of the bonds one year later on January 1,2020? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

$1,000,000 × 0.98 = $980,000
$1,000,000 - $980,000 = $20,000 discount
$20,000 ÷ 5 years = $4,000
$980,000 + $4,000 = $984,000

On January 1,2019,Anthony Corporation Issued $1,000,000 of 6%,5-Year Bonds at 98,with