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On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $70 million dated January 1. The bonds mature in 2040 (20
On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $70 million dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 14%. Interest is paid semiannually (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1 (Use appropriate factor(s) from the tobles provided.) Required: 1-a. Determine the price of the bonds at January 1, 2021. 1-b. Prepare the journal entry to record their issuance by Instaform. 2-8. Assume the market rate was 11%. Determine the price of the bonds at January 1, 2021 2-b. Assume the market rate was 11%. 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. Complete this question by entering your answers in the tabs below
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