Answer:
$85,553
Explanation:
January 1, 2021
Dr Cash 114.963
Cr Bonds payable 100,000
Cr Premium on bonds payable 14,963
market price:
$100,000 / (1 + 5%)⁴⁰ = $14,205
$6,000 x 19.793 (PVIFA, 5%, 40 periods) = $100,758
market price = $114,963
amortization of bond premium = ($114,963 x 5%) - $6,000 = -$252
amortization of bond premium = ($114,711 x 5%) - $6,000 = -$264
carrying value = $100,000 - $14,447 = $85,553