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Bond premium or discount is being amortized

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Reference no: EM131212898

On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that. pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,087 every six months. The company's December 31, Year 1 balance sheet should reflect total liabilities associated with the bond issue in the amount of: $3,780,000. $3,220,000. $3,097,500. $3,340,063. $3,902,500.

Reference no: EM131212898

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