Question - Five years ago, Ella's issued 10-year $1,000,000 bonds. At issuance, the bonds had a discount of $80,000. Ella's uses the straight line method of amortization. What is the carrying amount of the bonds today (after five full years)?
$1,000,000
$920,000
$960,000
None of the other alternatives are correct
$1,040,000