What is the carrying value of the bond liability

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Question - On January 1, 2018, Herskovitz Company issued $600,000 of ten-year, 9% bonds for $619,935. The market rate of interest on the date of issue was 8.5%, and semi-annual interest will be paid each June 30 and December 31. The company uses the effective rate method of amortization. What is the carrying value of the bond liability to be reported on the December 31, 2018 balance sheet?

a. $593,588

b. $618,601

c. $619,282

d. $500,000

Reference no: EM133048082

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