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At what amount should Planet report the carrying value

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Question - On January 1, 20x1, Planet Corporation issued $1,000,000 of its 10-year, 9% bonds (interest paid annually) to yield 8%. The present value of $1 at 9% for 10 years is 0.4224, and the present value of an ordinary annuity of $1 at 9% for 10 years is 6.4177. The present value of $1 at 8% for 10 years is 0.4632, and the present value of an ordinary annuity of $1 at 8% for 10 years is 6.7101. Planet paid the underwriter bond issue costs of $35,000. At what amount should Planet report the carrying value of this liability on its balance sheet as of January 1, 20x1?

Reference no: EM133012584

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