(Solution) - On January 1 2016 the McMillan Corporation issued 86 000 -(2025 Original AI-Free Solution)
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On January 1, 2016, the McMillan Corporation issued $ 86,000 par value, six- year bonds with a 0% stated interest rate. The discount on the bonds is amortized annually each December 31. The market rate of interest on the date of the bond issue was 3.25%. Below is the amortization table for the bond. Assume that McMillan elected the fair value option on the date of issue.
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Prepare the entry required to adjust the balance of the debt to fair value at the end of the first, second, and third years.