Question - On January 2, 2011, west co. issued 9% bonds in the face amount of $500,000, which mature on January 2, 2012. The bonds were issued for 469500 to yield 10%. Interest] is payable semiannually on June 30 and December 31. West uses the effective interest rate method of amortizing bond discount. In its June 30, 2011, balance sheet, what value should west report as the book value or carrying value of the bonds payable?
a. $469,500
b. $470,475
c. $471,025
d. $500,000