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On January 1,2019,Tonika Company Issued a Four-Year,$10,000,7% Bond

Question 25

Multiple Choice

On January 1,2019,Tonika Company issued a four-year,$10,000,7% bond.The interest is payable annually each December 31.The issue price was $9,668 based on an 8% effective interest rate.Tonika uses the effective-interest amortization method.
-The book value of the bonds as of December 31,2019 is closest to:


A) $8,968.
B) $9,945.
C) $9,641.
D) $9,741.

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