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4. Prepare an amortization schedule for the 1st 5 years (effective method) using the following data: 1. On January 1, 2010, ABC Co. issued
4. Prepare an amortization schedule for the 1st 5 years (effective method) using the following data: 1. On January 1, 2010, ABC Co. issued $2,000,000, 5%, 10 year bonds, interest payable on June 30th and December 31st to yield 6%. Use the following format and round to nearest dollar (may have small rounding error). The bonds were issued for $1,851,234. Date Cash paid Interest expense Amortization Bond carry Value 5. Two companies are financed as follows: Bonds payable, 9% issued at face Common stock, $25 par Income tax is estimated at 40% of income. X Co. $5,000,000 3,000,000 Y Co. $3,000,000 3,000,000 Determine for each company the earnings per share of common stock, as before bond interest and income taxes is $2,280,000 each. that the income
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