Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do they get $95,027 for the carrying amount in year 1 Extinguishment of Debt Illustration: Three year 8% bonds of $100,000 issued on Jan.

image text in transcribedHow do they get $95,027 for the carrying amount in year 1

Extinguishment of Debt Illustration: Three year 8% bonds of $100,000 issued on Jan. 1, 2020, are recalled at 105 on Dec. 31, 2021. Unamortized bond issue costs are $10,000 and expenses of recall are $2,000. Market rate on issue date was 10%. 8% Cash Paid 10% Interest Discount se Amortized Date 01/01/2020 12/31/2020 12/31/2021 12/31/2022 $ 8,000 8,000 8,000 $ 9,503 9,653 9,817 $ 1,503 1,653 1,817 Carrying Amount $ 95,027 96,530 98,183 100,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Application Of Quantitative Techniques For The Prediction Of Bank Acquisition Targets

Authors: Pasiouras Fotios

1st Edition

9812565183, 9789812565181

More Books

Students also viewed these Accounting questions

Question

What does the term homoscedasticity mean?

Answered: 1 week ago

Question

Define induction and what are its objectives ?

Answered: 1 week ago

Question

Discuss the techniques of job analysis.

Answered: 1 week ago

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago

Question

Explain the guideline for job description.

Answered: 1 week ago

Question

What is job description ? State the uses of job description.

Answered: 1 week ago

Question

I didnt know who to talk to.

Answered: 1 week ago

Question

Th e complaint department was closed over the lunch hour.

Answered: 1 week ago

Question

Th ey probably would have treated me like a criminal.

Answered: 1 week ago