On January 1, 2015, Solis Co. issued its 10% bonds in the face amount of...
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On January 1, 2015, Solis Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1, 2020. The bonds were issued for $3,405,000 to yield 8%, resulting in bond premium of $405,000. Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2015, the carrying value of the bonds should be _____________.
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