ABC Company issues $430,000 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	Interest	Change in	Carrying
Date	Paid	Expense	Carrying Value	Value
01/01/2021				$	390,437
06/30/2021	$17,200	$17,570	$370		390,807
12/31/2021	17,200	17,586	386		391,193

Required:

What is the original issue price of the bonds?

multiple choice 1

• $390,437

• $430,000

• $390,807

• $447,200

What is the stated interest rate?

multiple choice 2

• 8.0%

• 9.0%

• 4.5%

• 4.0%

What is the market interest rate?

multiple choice 3

• 8.0%

• 9.0%

• 4.5%

• 4.0%

What is the interest expense reported on June 30, 2022?

multiple choice 4

• $17,604

• $17,200

• $17,622

• $17,586

What is the cash flow from operating activities from this bond in 2021?

multiple choice 5

• $34,400 outflow

• $35,156 outflow

• $390,437 inflow

• $356,037 inflow