Discount-Mart issues $20 million in bonds on January 1, 2021. The bonds have a ten-year...
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Discount-Mart issues $20 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds:
| Date | Cash Paid | Interest Expense | Increase in Carrying Value | Carrying Value | ||||||||
| 01/01/2021 | $ | 17,706,016 | ||||||||||
| 06/30/2021 | $ | 1,000,000 | $ | 1,062,361 | $ | 62,361 | 17,768,377 | |||||
| 12/31/2021 | 1,000,000 | 1,066,103 | 66,103 | 17,834,480 | ||||||||
| 06/30/2022 | 1,000,000 | 1,070,069 | 70,069 | 17,904,549 | ||||||||
| 12/31/2022 | 1,000,000 | 1,074,273 | 74,273 | 17,978,822 | ||||||||
What is the carrying value of the bonds as of December 31, 2022?
Multiple Choice
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$17,904,549.
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$19,978,822.
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$17,978,822.
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$17,834,480.
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