How much total cash will avery pay the bondholders to retire

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On June 30, 20X1, Avery Corp. has bonds outstanding with a face value of $500,000 and a carrying value of $485,000. retire all the bonds early on this date at 104. Interest has been accrued and paid up to the date of the retirement.

Problem 1: How much total cash will Avery pay the bondholders to retire these bonds early?

Option 1: $104,000

Option 2: $504,400

Option 3: $520,000

Option 4: $1,024,400

Reference no: EM133000089

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