Answer:
$24,353,219
Explanation:
The bond is issued on discount when the bond issuance proceeds are less than the face value of the bond. The discount is expensed over the bond period until maturity. It is added to the interest expense value to expense it.
Discount on the bond = Face value - cash proceeds = $24,900,000 - $24,324,441 = $575,559
According to straight line amortization
Discount charged in the period = $575,559 / 20 = $28,778 per year = $14,389 per six months
Cash payment of interest = $24,900,000 x 5.8% = $1,444,200 per year = $722,100 per six months
As on December 31, 2020, one year has passed since the bond is issued. We will calculate annual interest expense
Total Interest Expense = $1,444,200 + $28,778 = $1,472,978
Bond Carrying value will be the net of bond book value and un-adjusted discount balance.
Carrying value of Bond = 24,900,000 - (575,559 - 28,778) = $24,353,219
