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On 1 January 20X2, Investor Company purchased $1,700,000 of Operating Corp. 3% bonds, classified as an AC investment. The bonds pay semi-annual Interest each 30

image text in transcribed On 1 January 20X2, Investor Company purchased $1,700,000 of Operating Corp. 3% bonds, classified as an AC investment. The bonds pay semi-annual Interest each 30 June and 31 December. The market interest rate was 4% on the date of purchase. The bonds mature on 30 December 20X11. (PV of $1 PVA of $1, and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Investor. (Round time value factor to 5 decimal places. Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Price paid 2. Construct a table that shows interest revenue reported by Investor, and the carrying value of the investment, for the first two interest periods. Use the effective-interest method. (Round your answers to the nearest whole dollar amount.) Period 1 Cash Payment 2.0% Interest Revenue Discount Amortization Band Carrying Value 0 S 1,700.000 1 2image text in transcribed

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