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  3. ten year 5% bonds with a $500,000 face value were

Ten year 5% bonds with a $500,000 face value were sold at a discount of...

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Accounting

Ten year 5% bonds with a $500,000 face value were sold at a discount of $50,000. At the end of Year 3, the bonds' net carrying value on the balance sheet would be

$515,000

$485,000

$465,000

$500,000

On January 1, 2026, $1,000,000, 10-year, 10% bonds, were issued for $1,030,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method (i.e., spread out evenly over 10 years) to amortize premiums on bonds payable, the annual interest expense reported on the income statement is:

$97,000

$100,000

$103,000

$130,000

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Ten year 5% bonds with a $500,000 face value were sold at a discount of $50,000. At the end of Year 3, the bonds' net carrying value on the balance sheet would be O $515,000 $485,000 $465,000 O $500,000 On January 1, 2026, $1,000,000, 10-year, 10% bonds, were issued for $1,030,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method (i.e., spread out evenly over 10 years) to amortize premiums on bonds payable, the annual interest expense reported on the income statement is: O $97,000 O $100,000 $103,000 O $130,000

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