Answer:
The 12/31/21 bond carrying value is $916,000
Explanation:
The discount on bonds payable is the face value of $1000,000 minus the cash proceeds received from the bond issuance.
Discount on bonds payable=$1,000,000-$904,000=$96000
annual bond discount amortization=$96,000/8=$12000
annual coupon payment=$1,000,000*8%=$80,000
The carrying value of the bond as at 12/31/21=cash proceeds+bond discount amortization
The carrying value of the bond as at 12/31/21=$904,000+$12000=$916000
