Question
On July 1, 20X4, Ritter Inc. issued 5%, 10-year bonds with a face value of $3,000,000. The bonds pay interest semi-annually on June 30 and
On July 1, 20X4, Ritter Inc. issued 5%, 10-year bonds with a face value of $3,000,000. The bonds pay interest semi-annually on June 30 and December 31. At the time of issuance, the required market rate of return was 4%. Ritter paid costs directly related to issuing these bonds of $80,000. Ritter reports under IFRS. What is the amount of net proceeds received on the issuance of these bonds?
a.$3,165,272
b.$2,686,163
c.$3,245,272
d.$3,163,327
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Financial Accounting An International Introduction
Authors: David Alexander, Christopher Nobes
3rd Edition
273709268, 273709267, 978-0273709268
