On July 1, 2016, Bonita Industries issued 9% bonds in the face amount of $12500000,...
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On July 1, 2016, Bonita Industries issued 9% bonds in the face amount of $12500000, which mature on July 1, 2022. The bonds were issued for $11960000 to yield 10%, resulting in a bond discount of $540000. Bonita uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2018, Bonita's unamortized bond discount should be
$378500.
$390900.
$408500.
$420500.
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