Managerial Accounting Questions:

Q2:

Q3:

Franklin Corporation issues $81,000, 10%, 5-year bonds on January 1, for $84,645. Interest is paid semiannually on January 1 and July 1. If Franklin Corporation uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is

$3,240

$6,480

$3,686

$3,605

NMT Below is a table for the present value of $1 at Compound interest. 6% 10% 12% 0.943 0.909 0.893 0.890 0.826 0.797 0.840 0.751 0.712 0.792 0.683 0.636 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. 6% 10% 12% 0.943 0.909 0.893 1.833 1.736 1.690 2.673 2.487 2.402 3.465 3.170 3.037 4.212 3.791 3.605 - in Using the tables above, what is the present value of $10,093.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%? $30,652 $24,243 $10,093 $36,385