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  3. 1. on january 1, $808,000, five-year, 10% bonds, w

1. On January 1, $808,000, five-year, 10% bonds, were issued for $783,760. Interest is paid...

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Accounting

1. On January 1, $808,000, five-year, 10% bonds, were issued for $783,760. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize the discount on bonds payable, the semiannual amortization amount is

a.$40,400

b.$4,848

c.$24,240

d.$2,424

2. Bonds Payable has a balance of $991,000 and Premium on Bonds Payable has a balance of $10,901. If the issuing corporation redeems the bonds at 103, what is the amount of gain or loss on redemption?

a.$18,829 loss

b.$10,901 loss

c.$1,020,730 gain

d.$10,901 gain

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