Question
On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $440,000 of 6% bonds, due in 15 years, with
On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $440,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.
1. If the market interest rate is 6%, the bonds will issue at $440,000. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
2. If the market interest rate is 7%, the bonds will issue at $399,538. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
3. If the market interest rate is 5%, the bonds will issue at $486,047. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.
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Alternative Minimum Tax For Individuals IRS Audit Technique Guide ATG
Authors: Internal Revenue Service
1st Edition
1304131556, 978-1304131553
