Question
14.15 On January 1, 20X1, Hilton-top Hotels issued the following bond payable, interest payment is due annually on December 31. Par value of the bond
14.15
On January 1, 20X1, Hilton-top Hotels issued the following bond payable, interest payment is due annually on December 31.
| Par value of the bond | 700,000 |
| Coupon rate | 5.35% |
| Issue price | 675,000 |
| Term | 10 |
1.What is the carrying value of the bond at December 31, 20X2 (round to the nearest whole number)?
2.What is the interest expense on the income statement in 20X3, using market rate (round to the nearest whole number)?
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