FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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14. Megan, Inc., sold $500,000 of its 9%, five-year bonds dated January 1, 2018, on May 1, 2018, for $493,000 plus accrued interest. Interest is paid on January 1 and July 1 and straight-line amortization is used. The net liability for the bonds after recording the sale would be
a. $508,000
b. $507,700
c. $500,000
d. $493,000
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