How much would be shown as the carrying amount

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Question - On January 1 2014 Sonics Corporation issued 3,000 of its 9% 1,000 bonds when the prevailing rate of interest was 8%. Interest is payable annually every January 1. The bonds mature on January 1, 2019. Sonic paid transaction costs of 24,460 in relation to the issue of the debt instruments in effect the yield rate is 8.2%. Sonics used the effective method of amortization.

What is the balance of the unamortized transaction cost or bond issue as of December 31, 2015?

a. 10,818

b. 15,676

c. 20,226

d. 5,598

On December 31, 2015 balance sheet, how much would be shown as the carrying amount of the bonds payable?

a. 3,022,181

b. 3,077,314

c. 3, 061,631

d. 3,042,681

Reference no: EM133033554

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