Moons unamortized bond discount

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Reference no: EM13152164

On July 1, 2002, Moon, Inc. issued 9% bonds in the face amount of $2,000,000, which mature on July 1, 2012. The bonds were issued for $1,878,000 to yield 10%, resulting in a bond discount of $122,000. Moon uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2004, Moon's unamortized bond discount should be:

a. $105,620.

b. $102,000.

c. $97,600.

d. $86,000.

Reference no: EM13152164

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