Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10-year term. The bonds were issued on January 1, 2016, and Wayne uses the straight-line method of amortization. Interest is paid annually on December 31.
Assuming Wayne issued the bonds for 102½, the carrying value of the bonds on the December 31, 2016 balance sheet would be: A. $601,500.
B. $613,500.
C. $615,000.
D. $616,500.
