Question
17 ABC Company issues $415,000 of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the
17 ABC Company issues $415,000 of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: Carrying Date Paid Cash Interest Change in Expense Carrying Value Value 01:51:28 01/01/2021 $571,265 06/30/2021 $16,600 $14,282 $-2,318 568,947 12/31/2021 16,600 14,224 -2,376 566,571 Required: What is the original issue price of the bonds? O $571,265 O $415,000 O $568,947 O $431,600 What is the stated interest rate? O 8.0% O 5.0% O 2.5% O 4.0% What is the market interest rate? O 8.0% O 5.0% O 2.5% O 4.0% What is the interest expense reported on June 30, 2022? O $14,164 O $16,600 O $14,103 O $14,224 What is the cash flow from operating activities from this bond in 2021? O $33,200 outflow O $28,506 outflow O $571,265 inflow O $538,065 inflow
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