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17 Need just answer in 10 minutes. I will rate positive ABC Company issues $550,000 of bonds on January 1, 2021 that pay interest semiannually
17 Need just answer in 10 minutes. I will rate positive
ABC Company issues $550,000 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. Cash Paid Interest Expense Change in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 Carrying Value $757,098 754,025 750,876 $22,000 22,000 $18,927 18,851 $-3,073 -3,149 Required: What is the original issue price of the bonds? O $757,098 $550,000 O $754,025 $572,000 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% 0 4.0% What is the interest expense reported on June 30, 2022? O $18,772 O $22,000 $18,691 O $18.851 What is the cash flow from operating activities from this bond in 2021? O $44,000 outflow O $37,778 outflow O $757,098 inflow O $713.098 inflowStep by Step Solution
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