Question
Ava, Inc., issued 10% bonds, dated January 1, with a face amount of $128,300 on January 1, 2016 for an issue price of 106.5. The
Ava, Inc., issued 10% bonds, dated January 1, with a face amount of $128,300 on January 1, 2016 for an issue price of 106.5. The bonds mature on December 31, 2025 (10 years). For bonds of similar risk and maturity the market yield is 8%. Interest is paid annually on December 31.
What is the carrying value of the bond on December 31,2016?
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Management Accounting A Business Planning Approach
Authors: Noah P. Barsky, Jr. Anthony H. Catanach
2nd Edition
1516506286, 978-1516506286
