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1 3 points On January 1, Year 1, Booker Corporation issued a...

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Accounting

1
3 points
On January 1, Year 1, Booker Corporation issued a $5,000 face value bond that sold for 90. The bond had a five-year term and paid 10% annual interest. The company used the proceeds from the bond issue to buy land. The land was leased for $600 of cash revenue per year and was sold at the end of the 5 th year for $4,200 cash. The straight-line method of amortization is used. The carrying value of the bond liability on January 1, Year 1, would be
$4,500.
$4,600
$5,000.
$4,000.
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