The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on April 1,...
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The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on April 1, Y1. The bonds pay interest every September 30 and March 31. The market rate of interest on the issuance date was 4%. The company uses the straight-line method for amortization. What was the bond carrying value that was reported for the bonds on the balance sheet on March 31, Y2? a. $500,000 b. $501,500 c. $513.500 d. $486,250
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