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On January 1, 20X1 Gopher Corporation issued 3-year, $400,000 face value, 10% coupon bonds, which pay interest semi-annually.each June 30 and December 31.1 The bonds

On January 1, 20X1 Gopher Corporation issued 3-year, $400,000 face value, 10% coupon bonds, which pay interest semi-annually.each June 30 and December 31.1 The bonds mature on December 31, 20x3, 1 On January 1, 20X1 the market rate (yield rate) of interest on similar bonds in the market was 8% and thus the bonds were issued for $420.967 as shown in the partially completed bond amortization given below. Gopher Corporation uses the effective interest method in calculating interest expense and in the amortization of any discount or premium Interest Expense Premium Carrying Value Amortized $420,967 (b) Date Cash 1/1/X1 6/30/X1 a) 12/31/X1 6,839 ko 6/30/x2 12/31/X2 6/30/X3 12/31/X3 (d) Calculate the carrying value of the bonds [letter (b) in the table after the first interest payment is made (e. at 6/30/X) (hint: make the 6/30/X1 JE) Multiple Choice Calculate the carrying value of the bonds pettes (b) in the table) after the first interest payment is made (e. at 6/30/XT. hint make the 6300x1.J Multiple Choice $400.967 $404128 5424128 $417806 9:02 PM 4+ 12/15/2000image text in transcribedimage text in transcribed

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