Use of straight-line method of amortization

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Reference no: EM13157816

On October 1, 2007, Porter Co. purchased to hold to maturity 1,000 of the $1,000 face value, 9% bonds for $990,000 which includes $15,000 accrued interest. The bonds, which mature on February 1, 2016, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2007 balance sheet at a carrying what value?

A. $990,250

B. $975,000

C. $990,000

D. $975,750

Reference no: EM13157816

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