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Appling Enterprises issued 11% bonds with a face amount of $490,000 on January 1, 2018. The bonds sold for $453,137 and mature in 2037 (20
Appling Enterprises issued 11% bonds with a face amount of $490,000 on January 1, 2018. The bonds sold for $453,137 and mature in 2037 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2018 as determined by their market values in the over-the- counter market were the following March 31 June 30 September 30 December 31 $480,000 460,000 453,000 460,000 General (risk-free) interest rates did not change during 2018 Required 1. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? 2. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? 3. By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? 4.By how much will Appling's comprehensive income be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? (For all requirements, Do not round your intermediate calculations.)
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