Lassen Corporation issued ten-year term bonds on January 1, 20x7, with a face value of $800,000. The face interest rate is 6 percent and interest is payable semiannually on June 30 and December 31

Lassen Corporation issued ten-year term bonds on January 1, 20x7, with a face value of $800,000. The face interest rate is 6 percent and interest is payable semiannually on June 30 and December 31. The bonds were issued for $690,960 to yield an effective annual rate of 8 percent. The effective interest method of amortization is to be used. The carrying value of the bonds payable on the December 31, 20x7, balance sheet date should be

$696,412.
$698,236.
$698,382.
$690,960

File name: Lassen-Corporation-issued-ten.doc File type: application/msword Price: $5