On january 1, $1,000,000, 20-year, 8% bonds, were issued for $1,070,000. interest is paid annually on january 1. if the issuing corporation uses the straight-line method to amortize discounts and premiums on bonds payable, the annual amortization amount is

Annual Amortization expense = $76,500

Explanation:

In the given case the interest expense for the year will be $1,000,000 8% = $80,000

Now, further the bonds are issued at a value more than face value, i.e. on premium of $1,070,000 - $1,000,000 = $70,000

Estimated life = 20 years

Therefore, per year premium amortization = $70,000/20 = $3,500 each year.

Thus annual amortization = $80,000 interest - Premium amortization $3,500

= $76,500.

In case if bonds are issued on discount then amortization is added to interest amortization as would increase the cost of company.

Final Answer

$76,500

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

hello the answer is d