Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1, 2013

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Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $400,000, pay interest annually on December 31st, and have a call price of 102. Sparks uses the straight-line method of amortization. What is the carrying value of the bonds on January 1, 2015?

 

$381,600

 

$418,400

 

$400,000

 

$420,700
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