Porter uses the straight-line method of amortization. the, Ask an Expert

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On October 1, 2004, Porter Co. purchased to hold to maturity, 1,200, $1,000, 9% bonds for $1,188,000 which includes $18,000 accrued interest. The bonds, which mature on February 1, 2013, pay interest semiannually on February 1 and August 1. Porter uses the straight-line method of amortization. The bonds should be reported in the December 31, 2004 balance sheet at a carrying value of :

a. $1,170,000

b. $1,170,900

c. $1,188,000

d. $1,188,360

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