On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for these bonds is 8%. Interest is payable annually on December 31. Blossom uses the effective-interest method of amortizing bond premium. At the end of the first year, Blossom should report unamortized bond premium of $328500 $403908 O $440354 $439460

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for these
bonds is 8%. Interest is payable annually on December 31. Blossom uses the effective-interest method of
amortizing bond premium. At the end of the first year, Blossom should report unamortized bond premium of
$328500
$403908
$440354
$439460
Transcribed Image Text:On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for these bonds is 8%. Interest is payable annually on December 31. Blossom uses the effective-interest method of amortizing bond premium. At the end of the first year, Blossom should report unamortized bond premium of $328500 $403908 $440354 $439460
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