Bronco High School issues $10 million in bonds on January 1, 2021, that pay interest semi-annually on June 30 and December 31. A portion of the bond amortization schedule appears below:
Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value
01/01/2021 $ 8,800,000
06/30/2021 $ 400,000 $ 440,000 $ 40,000 8,840,000
12/31/2021 400,000 442,000 42,000 8,882,000
The bonds were issued at:
A) Face amount.
B) A discount.
C) A premium.
D) Cannot be determined from the given information.
