On January 1, 2020,Mark Corporation purchased a $1,400,000bond issued by DAN Ltd. The bond was due to mature on December 31, 2022, and paid interest at6% every June 30 and December 31. The market interest rate was8%.Mark had both the intention and ability to hold the bond until its maturity date.
On January 1, 2022,Mark became aware that DAN was experiencing severe financial difficulties. After discussing the situation with DAN and some of the other creditors,Mark believed that DAN would now be able to repay only $1,260,000of the original $1,400,000bond
A.) Calculate the purchase price of the bond using A-2 and A-4 Tables, a financial calculator or Excel functions.(Round factor values to 8 decimal places, e.g. 1.25124125 and final answer to 2 decimal places, e.g. 5,275.36.)

B.) Calculate the carrying amount of the bond on January 1, 2022 by preparing a bond amortizable table.(Round answer to 2 decimal places, e.g. 5,275.36.)

C.) Calculate the revised present value of the bond at January 1,2022 using A-2 and A-4 Tables, a financial calculator or Excel functions.(Round factor values to 8 decimal places, e.g. 1.25124125 and final answer to 2 decimal places, e.g. 5,275.36.)

Table A-2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) PVP.=7 1 =(1+i)* (1+i)" (n) 4% 5% 6% 8% 9% 10% 11% 12% 15% periods 2% 21/2% 3% 97087 96156 95238 94340 92 593 91743 90909 90090 89286 86957 .98039 97 561 94260 92456 90703 .89000 85734 .84168 .82645 81162 .79719 .75614 96117 95181 92860 91514 88900 86384 .83962 .79383 .77218 75132 .73119 .71178 .65752 .94232 57175 92385 90595 88849 .85480 82270 .79209 .73503 .70843 68301 65873 .63552 .78353 .74726 .68068 64993 .62092 .59345 56743 49718 90583 .88385 86261 82193 .86230 83748 .79031 .74622 .70496 .63017 59627 .56447 .53464 .50663 .43233 88797 58349 54703 51316 48166 45235 37594 87056 84127 81309 75992 .71068 66506 82075 78941 73069 67684 62741 54027 50187 46651 43393 40388 32690 .85349 .76642 .70259 64461 59190 50025 46043 42410 39092 .36061 .28426 83676 .80073 10 82035 .78120 .74409 .67556 61391 .55839 46319 .42241 .38654 .35218 .32197 .24719 28748 .21494 11 80426 .76214 .72242 .64958 .58468 52679 .42888 .38753 .35049 .31728 .55684 49697 .39711 .35654 .31863 .28584 .25668 .18691 12 78849 .74356 .70138 .62460 .16253 13 77303 .72542 .68095 .60057 .63032 46884 .36770 .32618 .28966 .25751 .22917 .26333 23199 .20462 14133 75788 .70773 66112 .57748 .50507 .44230 .34046 .29925 .18270 .12289 15 .74301 .69047 .64186 .56526 48102 .41727. .31524 .27454 .23939 .20900 .16312 10687 16 .72845 .67362 .62317 .53391 45811 .39365 .29189 .25187 .21763 .18829 .71416 .65720 .60502 .51337 43630 .37136 .27027 .23107 .19785 .16963 .14564 09293 18 70016 .64117 58739 49363 41552 .35034 25025 21199 17986 15282 .13004 08081 .13768 .11611 07027 19 68643 62563 .57029 .47464 .39573 .33061 .23171 19449 16351 .14864 .12403 .10367 .06110 20 67297 .61027 .56368 .45639 .37689 31180 .21455 .17843 .09256 .06313 21 65978 59539 .63755 .43883 35894 .29416 .19866 .16370 .13513 .11174 .64684 58086 52189 42196 .34185 27751 . 18394 .15018 .12285 .10067 08264 04620 .07379 .04017 63416 .56670 .50669 40573 .32557 26180 .17032 13778 .11168 09069 39012 31007 24698 .15770 .12641 .10153 .08170 .06588 03493 24 62172 .55288 49193 25 60953 .53939 47761 .37512 .29530 23300 .14602 .11597 .09230 .07361 .05882 .03038 59758 .52623 .46369 .36069 .28124 .21981 .13520 10639 08391 .06631 .05252 .02642 .02297 .58586 .51340 45019 .34682 .26785 .20737 .12519 .09761 .07628 .05974 .04689 01997 .57 437 .50068 43708 .33348 .25509 .19563 .11591 .08955 .06934 .05382 .04187 56311 .24295 .10733 08216 06304 04849 .03738 .01737 48866 42435 .32065 18456 55207 47674 .41199 .30832 .23138 17411 .09938 07537 .05731 .04368 03338 .01510 .22036 16425 .09202 .06915 .05210 .03935 .02980 .01313 .54125 46511 .39999 .29646 28506 .20987 15496 08520 .06344 04736 .03545 .02661 01142 .53063 45377 38834 .00993 .52023 .44270 .27409 .19987 14619 .07889 .05820 .04306 .03194 02376 37703 43191 07305 .02121 .51003 36604 .19035 .13791 .05340 .03914 .02878 00864 .26355 .50003 42137 35538 .25342 .18129 13011 06763 .04899 .03558 .02592 01894 .00751 49022 41109 34503 24367 .17266 12274 06262 .04494 03235 .02335 .01691 .00653 8061 .40107 33498 .23430 .16444 .11579 05799 .04123 .02941 .02104 .01510 00568 47119 .39128 .32523 .22529 15661 .10924 05369 03783 .02674 01896 01348 00494 .46195 .38174 31575 .21662 .14915 10306 04971 .03470 .02430 01708 .01204 00429 .00373 45289 .37243 .30656 .20829 .14205 .09722 -04603 .03184 .02210 .01538 .01075Table A-4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 PVF-OA_ ;= (1+5)" (n) periods 2% 212% 3% 4% 5% 6% 8% 9% 10% 11% 12% 15% 98039 .97561 .97087 .96154 .95238 .94340 .92593 .91743 .90909 . 90090 .89286 .86957 1.94156 1.927 42 1.91347 1.88609 1.85941 1.83339 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.57710 2.53130 2.48685 2.44371 1 2.40183 2.28323 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 4.62288 4.48592 4.35626 4.23064 4.11141 3.78448 6.47199 6.34939 6.23028 6.00205 5.78637 5.5823 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 6.24689 5.99526 5.75902 6.53705 5.32825 4.77158 10 8.98259 8.75206 8. 53020 8.11090 7.72173 7.36009 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.13896 6.80519 6.49606 6.20652 5.93770 5.23371 12 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 13 11.34837 10.98319 10.63496 9.98565 9.39357 8.85268 7.90378 7.48690 7.10336 6.74987 6.42365 5.58315 14 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 15 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 16 13.57771 13.05500 0 12.56110 11.65230 10.83777 10.10590 8.85137 8.31256 7.82371 7.37916 6.97399 5.96424 17 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 18 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 19 15.67846 14.9788 14.32380 13.13394 12.08532 11.15812 9.60360 8.96012 8.36492 7.83929 7.36578 6.19823 20 16.35143 15.58916 14.87747 13.59033 1 12.46221 11.46992 9.81815 9.12855 8.51356 7 7.96333 7.46944 6.25933 21 17.01121 16.18455 15.41502 14.02916 12.82115 11.76408 10.01680 9.29224 8.64869 8.07 507 7.56200 6.31246 17.65805 16.76541 15.93692 14.45112 213.16800 12.04158 10.20074 9.44243 8.77154 8.17574 7.64465 6.35866 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 10.37106 9.58021 18.88322 8.26643 7.71843 6.39884 18.91393 17.88499 16.93564 15.24696 13.79864 12.55036 10.52876 9.70661 8.98474 8.34814 7.78432 6.43377 25 19.52346 18.42438 17.41315 15.62208 14.09394 12.78336 10.67478 9.82258 9.07704 8.42174 7.84314 6.46415 20.12104 18.95061 17.87684 15.98277 14.37519 13.00317 10.80998 9.92897 9.16095 8.48806 7.89566 6.49056 20.70690 19.46401 18.32703 16.32959 14.64303 13.21063 10.93516 10.02658 9.23722 8.45780 0 7.94265 6.51353 21.28127 19.96489 18.76411 16.66306 14.89813 13.40616 11.05108 10.11613 9.30657 8.60162 7.98442 6.53351 21.84438 20.45356 19.18845 16.98371 15.14107 13.59072 11.15841 10.19828 9.36961 8.65011 8.02181 6.56088 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 11.25778 10.27365 9.42691 8.69379 8.05518 6.56598 22.93770 21.39541 20.00043 17.58849 15.59281 13.92909 11.34980 10.34280 9.47901 8.73315 8.08499 6.57911 23.46833 21.84918 20.38877 17.87355 15.80268 14.08404 11.43500 10.40624 9.52638 8.76860 8.11159 6.59053 23.96856 22.29188 20.76579 18.14765 16.00255 14.23023 11.51389 10.46444 9.56943 8.80064 8.13535 6.60046 24.49859 22.72379 21.13184 18.41120 16.19290 14.36814 11.58693 10.51784 9.60858 8 8.82932 8.15656 6.60910 24.99862 23.14516 21.48722 18.66461 16.37419 14.49825 11.65457 10.56682 9.64416 8.85524 8.17550 6.61661 25.48884 4 23.55625 21.83225 18.90828 16.54685 14.62099 11.71719 10.61176 9.67651 8.87859 8.19241 6.62314 25.96945 23.95732 22.16724 19.14258 16.71129 14.73678 11.77518 10.65299 9.70592 8.89963 8.20751 1 6.62882 68848 26.44064 24.34860 22.49246 19.36786 16.86789 14.84602 11.82887 10.69082 9.73265 8.91859 8.22099 6.63375 26.90259 24.73034 22.80822 19.58448 17.01704 14.94907 11.87858 10.72552 9 9.75697 8. 93 567 8.23303 6.63805 27.35648 25.10278 23.11477 19.79277 17.15909 15.04630 11.92461 10.75736 9.77905 8.95105 8.24378 6.64178

Question

On January 1, 2020,Mark Corporation purchased a $1,400,000bond issued by DAN Ltd. The bond was due to mature on December 31, 2022, and paid interest at6% every June 30 and December 31. The market interest rate was8%.Mark had both the intention and ability to hold the bond until its maturity date.

On January 1, 2022,Mark became aware that DAN was experiencing severe financial difficulties. After discussing the situation with DAN and some of the other creditors,Mark believed that DAN would now be able to repay only $1,260,000of the original $1,400,000bond

A.) Calculate the purchase price of the bond using A-2 and A-4 Tables, a financial calculator or Excel functions.(Round factor values to 8 decimal places, e.g. 1.25124125 and final answer to 2 decimal places, e.g. 5,275.36.)

B.) Calculate the carrying amount of the bond on January 1, 2022 by preparing a bond amortizable table.(Round answer to 2 decimal places, e.g. 5,275.36.)

C.) Calculate the revised present value of the bond at January 1,2022 using A-2 and A-4 Tables, a financial calculator or Excel functions.(Round factor values to 8 decimal places, e.g. 1.25124125 and final answer to 2 decimal places, e.g. 5,275.36.)

Table A-2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) PVP.=7 1 =(1+i)* (1+i)" (n) 4% 5% 6% 8% 9% 10% 11% 12% 15% periods 2% 21/2% 3% 97087 96156 95238 94340 92 593 91743 90909 90090 89286 86957 .98039 97 561 94260 92456 90703 .89000 85734 .84168 .82645 81162 .79719 .75614 96117 95181 92860 91514 88900 86384 .83962 .79383 .77218 75132 .73119 .71178 .65752 .94232 57175 92385 90595 88849 .85480 82270 .79209 .73503 .70843 68301 65873 .63552 .78353 .74726 .68068 64993 .62092 .59345 56743 49718 90583 .88385 86261 82193 .86230 83748 .79031 .74622 .70496 .63017 59627 .56447 .53464 .50663 .43233 88797 58349 54703 51316 48166 45235 37594 87056 84127 81309 75992 .71068 66506 82075 78941 73069 67684 62741 54027 50187 46651 43393 40388 32690 .85349 .76642 .70259 64461 59190 50025 46043 42410 39092 .36061 .28426 83676 .80073 10 82035 .78120 .74409 .67556 61391 .55839 46319 .42241 .38654 .35218 .32197 .24719 28748 .21494 11 80426 .76214 .72242 .64958 .58468 52679 .42888 .38753 .35049 .31728 .55684 49697 .39711 .35654 .31863 .28584 .25668 .18691 12 78849 .74356 .70138 .62460 .16253 13 77303 .72542 .68095 .60057 .63032 46884 .36770 .32618 .28966 .25751 .22917 .26333 23199 .20462 14133 75788 .70773 66112 .57748 .50507 .44230 .34046 .29925 .18270 .12289 15 .74301 .69047 .64186 .56526 48102 .41727. .31524 .27454 .23939 .20900 .16312 10687 16 .72845 .67362 .62317 .53391 45811 .39365 .29189 .25187 .21763 .18829 .71416 .65720 .60502 .51337 43630 .37136 .27027 .23107 .19785 .16963 .14564 09293 18 70016 .64117 58739 49363 41552 .35034 25025 21199 17986 15282 .13004 08081 .13768 .11611 07027 19 68643 62563 .57029 .47464 .39573 .33061 .23171 19449 16351 .14864 .12403 .10367 .06110 20 67297 .61027 .56368 .45639 .37689 31180 .21455 .17843 .09256 .06313 21 65978 59539 .63755 .43883 35894 .29416 .19866 .16370 .13513 .11174 .64684 58086 52189 42196 .34185 27751 . 18394 .15018 .12285 .10067 08264 04620 .07379 .04017 63416 .56670 .50669 40573 .32557 26180 .17032 13778 .11168 09069 39012 31007 24698 .15770 .12641 .10153 .08170 .06588 03493 24 62172 .55288 49193 25 60953 .53939 47761 .37512 .29530 23300 .14602 .11597 .09230 .07361 .05882 .03038 59758 .52623 .46369 .36069 .28124 .21981 .13520 10639 08391 .06631 .05252 .02642 .02297 .58586 .51340 45019 .34682 .26785 .20737 .12519 .09761 .07628 .05974 .04689 01997 .57 437 .50068 43708 .33348 .25509 .19563 .11591 .08955 .06934 .05382 .04187 56311 .24295 .10733 08216 06304 04849 .03738 .01737 48866 42435 .32065 18456 55207 47674 .41199 .30832 .23138 17411 .09938 07537 .05731 .04368 03338 .01510 .22036 16425 .09202 .06915 .05210 .03935 .02980 .01313 .54125 46511 .39999 .29646 28506 .20987 15496 08520 .06344 04736 .03545 .02661 01142 .53063 45377 38834 .00993 .52023 .44270 .27409 .19987 14619 .07889 .05820 .04306 .03194 02376 37703 43191 07305 .02121 .51003 36604 .19035 .13791 .05340 .03914 .02878 00864 .26355 .50003 42137 35538 .25342 .18129 13011 06763 .04899 .03558 .02592 01894 .00751 49022 41109 34503 24367 .17266 12274 06262 .04494 03235 .02335 .01691 .00653 8061 .40107 33498 .23430 .16444 .11579 05799 .04123 .02941 .02104 .01510 00568 47119 .39128 .32523 .22529 15661 .10924 05369 03783 .02674 01896 01348 00494 .46195 .38174 31575 .21662 .14915 10306 04971 .03470 .02430 01708 .01204 00429 .00373 45289 .37243 .30656 .20829 .14205 .09722 -04603 .03184 .02210 .01538 .01075Table A-4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 PVF-OA_ ;= (1+5)" (n) periods 2% 212% 3% 4% 5% 6% 8% 9% 10% 11% 12% 15% 98039 .97561 .97087 .96154 .95238 .94340 .92593 .91743 .90909 . 90090 .89286 .86957 1.94156 1.927 42 1.91347 1.88609 1.85941 1.83339 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.57710 2.53130 2.48685 2.44371 1 2.40183 2.28323 3.80773 3.76197 3.71710 3.62990 3.54595 3.46511 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 4.71346 4.64583 4.57971 4.45182 4.32948 4.21236 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 5.60143 5.50813 5.41719 5.24214 5.07569 4.91732 4.62288 4.48592 4.35626 4.23064 4.11141 3.78448 6.47199 6.34939 6.23028 6.00205 5.78637 5.5823 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 7.32548 7.17014 7.01969 6.73274 6.46321 6.20979 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 8.16224 7.97087 7.78611 7.43533 7.10782 6.80169 6.24689 5.99526 5.75902 6.53705 5.32825 4.77158 10 8.98259 8.75206 8. 53020 8.11090 7.72173 7.36009 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 11 9.78685 9.51421 9.25262 8.76048 8.30641 7.88687 7.13896 6.80519 6.49606 6.20652 5.93770 5.23371 12 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.53608 7.16073 6.81369 6.49236 6.19437 5.42062 13 11.34837 10.98319 10.63496 9.98565 9.39357 8.85268 7.90378 7.48690 7.10336 6.74987 6.42365 5.58315 14 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 15 12.84926 12.38138 11.93794 11.11839 10.37966 9.71225 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 16 13.57771 13.05500 0 12.56110 11.65230 10.83777 10.10590 8.85137 8.31256 7.82371 7.37916 6.97399 5.96424 17 14.29187 13.71220 13.16612 12.16567 11.27407 10.47726 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 18 14.99203 14.35336 13.75351 12.65930 11.68959 10.82760 9.37189 8.75563 8.20141 7.70162 7.24967 6.12797 19 15.67846 14.9788 14.32380 13.13394 12.08532 11.15812 9.60360 8.96012 8.36492 7.83929 7.36578 6.19823 20 16.35143 15.58916 14.87747 13.59033 1 12.46221 11.46992 9.81815 9.12855 8.51356 7 7.96333 7.46944 6.25933 21 17.01121 16.18455 15.41502 14.02916 12.82115 11.76408 10.01680 9.29224 8.64869 8.07 507 7.56200 6.31246 17.65805 16.76541 15.93692 14.45112 213.16800 12.04158 10.20074 9.44243 8.77154 8.17574 7.64465 6.35866 18.29220 17.33211 16.44361 14.85684 13.48857 12.30338 10.37106 9.58021 18.88322 8.26643 7.71843 6.39884 18.91393 17.88499 16.93564 15.24696 13.79864 12.55036 10.52876 9.70661 8.98474 8.34814 7.78432 6.43377 25 19.52346 18.42438 17.41315 15.62208 14.09394 12.78336 10.67478 9.82258 9.07704 8.42174 7.84314 6.46415 20.12104 18.95061 17.87684 15.98277 14.37519 13.00317 10.80998 9.92897 9.16095 8.48806 7.89566 6.49056 20.70690 19.46401 18.32703 16.32959 14.64303 13.21063 10.93516 10.02658 9.23722 8.45780 0 7.94265 6.51353 21.28127 19.96489 18.76411 16.66306 14.89813 13.40616 11.05108 10.11613 9.30657 8.60162 7.98442 6.53351 21.84438 20.45356 19.18845 16.98371 15.14107 13.59072 11.15841 10.19828 9.36961 8.65011 8.02181 6.56088 22.39646 20.93029 19.60044 17.29203 15.37245 13.76483 11.25778 10.27365 9.42691 8.69379 8.05518 6.56598 22.93770 21.39541 20.00043 17.58849 15.59281 13.92909 11.34980 10.34280 9.47901 8.73315 8.08499 6.57911 23.46833 21.84918 20.38877 17.87355 15.80268 14.08404 11.43500 10.40624 9.52638 8.76860 8.11159 6.59053 23.96856 22.29188 20.76579 18.14765 16.00255 14.23023 11.51389 10.46444 9.56943 8.80064 8.13535 6.60046 24.49859 22.72379 21.13184 18.41120 16.19290 14.36814 11.58693 10.51784 9.60858 8 8.82932 8.15656 6.60910 24.99862 23.14516 21.48722 18.66461 16.37419 14.49825 11.65457 10.56682 9.64416 8.85524 8.17550 6.61661 25.48884 4 23.55625 21.83225 18.90828 16.54685 14.62099 11.71719 10.61176 9.67651 8.87859 8.19241 6.62314 25.96945 23.95732 22.16724 19.14258 16.71129 14.73678 11.77518 10.65299 9.70592 8.89963 8.20751 1 6.62882 68848 26.44064 24.34860 22.49246 19.36786 16.86789 14.84602 11.82887 10.69082 9.73265 8.91859 8.22099 6.63375 26.90259 24.73034 22.80822 19.58448 17.01704 14.94907 11.87858 10.72552 9 9.75697 8. 93 567 8.23303 6.63805 27.35648 25.10278 23.11477 19.79277 17.15909 15.04630 11.92461 10.75736 9.77905 8.95105 8.24378 6.64178

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Question

On January 1, 2020,Mark Corporation purchased a $1,400,000bond issued by DAN Ltd. The bond was due to mature on December 31, 2022, and paid interest

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