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Financial Accounting

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Carrying Value Straight-Line Method

FINACT-M54KMG

On January 1, 2015, Chicken Soup Inc. issued \$1,000,000 face value, 8% bonds at 90. The bonds will mature in five years. The company pays interest semiannually on December 31 and July 1 of each year and amortizes any discount or premium by way of the straight-line method.

On December 31, what is the carrying value of the bonds (in dollars)?