On January 1, 2018, Instaform, Inc., issued 10% bonds with a face amount of $54 million, dated January 1. The bonds mature in 2037 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required: 1-a. Determine the price of the bonds at January 1, 2018.

1-b. Prepare the journal entry to record their issuance by Instaform. 2-a. Assume the market rate was 9%. Determine the price of the bonds at January 1, 2018.

2-b. Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform.

3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.

20.0% TABLE 1 Future Value of $1 FV = $1 (1 + i) n/i 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 1 1.01000 1.01500 1.02000 1.02500 1.03000 1.03500 2 1.02010 1.03022 1.04040 1.05063 1.06090 1.07123 3 1.03030 1.04568 1.06121 1.07689 1.09273 1.10872 4 1.04060 1.06136 1.08243 1.10381 1.12551 1.14752 5 1.05101 1.07728 1.10408 1.13141 1.15927 1.18769 4.0% 4.5% 5.0% 5.5% 1.04000 1.04500 1.05000 1.05500 1.08160 1.09203 1.10250 1.11303 1.12486 1.14117 1.15763 1.17424 1.16986 1.19252 1.21551 1.23882 1.21665 1.24618 1.27628 1.30696 6.0% 1.06000 1.12360 1.19102 1.26248 1.33823 7.0% 1.07000 1.14490 1.22504 1.31080 1.40255 8.0% 1.08000 1.16640 1.25971 1.36049 1.46933 9.0% 0.0% 1.09000 1.10000 1.18810 1.21000 1.29503 1.33100 1.41158 1.46410 1.53862 1.61051 11.0% 1.11000 1.23210 1.36763 1.51807 1.68506 12.0% 1.12000 1.25440 1.40493 1.57 1.76234 2.07360 2.48832 7 8 16 1.15969 1.19405 1.22926 1.26532 1.30226 1.34010 1.37884 1.07214 1.10984 1.14869 1.18869 1.22987 1.27228 1.31593 1.36086 1.40710 1.45468 1.08286 1.12649 1.17166 1.21840 1.26677 1.31681 1.36857 1.42210 1.47746 1.53469 09 1.24886 1.30477 1.36290 1.42331 1.48610 1.55133 1.61909 1.10462 1.16054 1.21899 1.28008 1.34392 1.41060 1.48024 1.55297 1.62889 1.70814 1.41852 1.50363 1.59385 1.68948 1.79085 1.50073 1.60578 1.71819 1.83846 1.96715 1.58687 1.71382 1.85093 1.99900 2.15892 1.67710 1.82804 1.99256 2.17189 2.36736 1.77156 1.94872 2.14359 2.35795 2.59374 1.87041 2.07616 2.30454 2.55804 2.83942 1.97 2.21068 2.47596 2.773 3.10585 2.98598 3.58318 4.29982 5.15978 6.19174 10 11 1.11567 1.17795 1.24337 1.31209 1.38423 1.45997 1.53945 1.62285 1.71034 1.80209 12 1.12683 1.19562 1.26824 1.34489 1.42576 1.51107 1.60103 1.69588 1.79586 1.90121 13 1.13809 1.21355 1.29361 1.37851 1.46853 1.56396 1.66507 1.77220 1.88565 2.00577 14 1.14947 1.23176 1.31948 1.41297 1.51259 1.61869 1.73168 1.85194 1.97993 2.11609 15 1.16097 1.25023 1.34587 1.44830 1.55797 1.67535 1.80094 1.93528 2.07893 2.23248 1.89830 2.01220 2.13293 2.26090 2.39656 2.104852.33164 2.25219 2.51817 2.40985 2.71962 2.57853 2.93719 2.75903 3.17217 2.58043 2.85312 2.81266 3.13843 3.06580 3.45227 3.34173 3.79750 3.64248 4.17725 3.15176 3.47855 7.43008 3.49845 3.89598 8.91610 3.88328 4.3634910.69932 4.31044 4.88711 4.784595.47357 15.40702 16 1.17258 1.26899 1.37279 1.48451 1.60471 1.73399 1.87298 2.02237 2.18287 2.35526 17 1.18430 1.28802 1.40024 1.52162 1.65285 1.79468 1.94790 2.11338 2.29202 2.48480 18 1.19615 1.30734 1.42825 1.55966 1.70243 1.85749 2.02582 2.20848 2.40662 2.62147 19 1.20811 1.32695 1.45681 1.59865 1.75351 1.92250 2.10685 2.30786 2.52695 2.76565 20 1.22019 1.34686 1.48595 1.63862 1.80611 1.98979 2.19112 2.41171 2.65330 2.91776 2.54035 2.69277 2.85434 3.02560 3.20714 2.95216 3.42594 3.97031 4.59497 5.31089 6.13039 3.15882 3.70002 4.32763 5.05447 5.89509 6.86604 3.379933.99602 4.71712 5.55992 6.54355 7.68997 3.61653 4.31570 5.14166 6.11591 7.26334 8.61276 3.86968 4.66096 5.60441 6.72750 8.06231 9.64629 18.48843 22.18611 26.62333 31.94800 38.33760 21 1.23239 1.36706 1.51567 1.67958 1.86029 2.05943 2.27877 2.52024 2.78596 3.07823 3.39956 4.14056 5.03383 6.10881 7.40025 8.94917 10.80385 46.00512 25 1.28243 1.45095 1.64061 1.85394 2.09378 2.36324 2.66584 3.00543 3.38635 3.813394.29187 5.42743 6.84848 8.62308 10.83471 13.58546 17.00006 95.39622 30 1.34785 1.56308 1.81136 2.09757 2.42726 2.80679 3.24340 3.74532 4.32194 4.98395 5.74349 7.61226 10.06266 13.26768 17.44940 22.89230 29.95992 237.37631 40 1.48886 1.81402 2.20804 2.68506 3.26204 3.95926 4.80102 5.81636 7.03999 8.51331 10.28572 14.97446 21.72452 31.40942 45.25926 65.00087 93.05097 1469.77160