Multiple Choice Question 199 Presented here is a partial amo

Multiple Choice Question 199 Presented here is a partial amortization schedule for Crane Company who sold $304000, five year 8% bonds on January 1, 2017 for $322240 and uses annual straight-line amortization. BOND AMORTIZATION SCHEDULE Interest Period Interest InterestPremium Unamortized Bond Carrying Paid Expense Amortization Premium Value anuary 1, 2017 $18240 $322240 anuary 2018 ()CH) (iv) Which of the following amounts should be shown in cell (iv)? $21888. O $14592. … O $16781. $10944.

Solution

Answer is 14592/-

	BONDS AMORTIZATION SCHEDULE
Interest Period	Interest Paid	Interest Expense	Premium Amortzation	Unamortized Premium	Bonds Carrying Value
January 1, 2017	24320	20672	3648	18240	304000
January 1, 2018	15200	20672	3648	14592	304000
				(18240-3648)
Face Value of Bonds	304000
Proceeds received	322240
Premium Received	18240
Amortization Period	5
Premium Amortization PA	3648
Answer is 14592/-