On November 1, 2015, Davis Company Issued $30,000, Ten-Year, 7

On November 1, 2015, Davis Company issued $30,000, ten-year, 7% bonds for $29,100. The bonds were dated November 1, 2015, and interest is payable each November 1 and May 1. Davis uses the straight-line method of amortization.
How much is the book value of the bonds after the November 1, 2016 interest payment was recorded using the straight-line method of amortization?

A) $29,010.
B) $29,100.
C) $29,190.
D) $29,280.

Correct Answer:

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