Respuesta :
Answer:
$1,250
Explanation:
The computation of the semi-annual amortization of the bond premium is shown below:
= (Issued amount - proceeds from the bonds) ÷ time period ÷ semi-annual
= ($210,000 - $200,000) ÷ 4 years ÷ 2
= $10,000 ÷ 4 years ÷ 2
= $1,250
In the case of semi-annual, we simply divided by 2 so that the accurate amount can come.
Answer:
Amortization of the bond premium is the excess amount which is paid above the face value of a bond . The semi annual amortization of a bond premium is $ 1,250 .
Explanation:
Given ,
Processed amount : $200,000
Time period : 4 years
Issued amount : $210,000
In the case of semi annual calculation , we will divide it by 2 .
For determining the semi annual amortization of a bond premium is shown below :
[tex]\begin{aligned}\text{Bond Premium}&=\frac{\text{Issued Amount}-\text{Processed Amount}}{\text{Time Period}\times\text{Semi Annual Amortization of Bond Premium}}\\&=\frac{\$210,000-\$200,000}{4\times2}\\&=\$1,250\\\end{aligned}[/tex]
For further query , https://brainly.in/question/37182284?referrer=searchResults .
