Solution-What the carrying value of the bonds would be

What the carrying value of the bonds would be

Reference no: EM132611796

Question 1: On October 1, 2017, Moray Ltd. purchased 500 of the $1,000 face value, 8% bonds of Eel Ltd. for $585,000, including accrued interest of $10,000. The bonds, which mature on January 1, 2021, pay interest semi-annually on January 1 and July 1. Moray used the straight-line method of amortization and appropriately recorded the bonds as long-term. On Moray's December 31, 2018 balance sheet, the carrying value of the bonds would be

Option 1: $568,000.

Option 2: $575,000.

Option 3: $570,000.

Option 4: $560,000.

Reference no: EM132611796

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What the carrying value of the bonds would be

Reference no: EM132611796

Reference no: EM132611796

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