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  3. 31. on january 1, patterson inc. issued $4,000,000

31. On January 1, Patterson Inc. issued $4,000,000, 9% bonds for $3,756,000. The market rate...

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Accounting

31. On January 1, Patterson Inc. issued $4,000,000, 9% bonds for $3,756,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Patterson uses the effective-interest method of amortizing bond discount. At the end of the second year, Patterson should report unamortized bond discount of

a. $118,400.

b. $228,400.

c. $211,240.

d. $204,000.

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