Treehouse Inc. issued $800,000 of 5%, 10-year bonds when the market rate was 4%. They received $863,275. Interest was paid semi-annually on Jan 1 and June 30. What is the carrying value on the bond at June 30 of year 3? Round your answer to the nearest whole dollar.

Treehouse Inc. issued $800,000 of 5%, 10-year bonds when the market rate was 4%. They received $863,275. Interest was paid semi-annually on Jan 1 and June 30. What is the carrying value on the bond at June 30 of year 3? Round your answer to the nearest whole dollar.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5EA: Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The...

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Question

Treehouse Inc. issued $800,000 of 5%, 10-year bonds when the market rate was 4%.
They received $863,275. Interest was paid semi-annually on Jan 1 and June 30.
What is the carrying value on the bond at June 30 of year 3?
Round your answer to the nearest whole dollar.

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