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Please answer ASAP! Will give thumbs up if correct! On January 1, 2018, Sam purchased a 4%, $500,000 corporate bond for $418,891. The bond was
Please answer ASAP! Will give thumbs up if correct!
On January 1, 2018, Sam purchased a 4%, $500,000 corporate bond for $418,891. The bond was issued on January 1, 2018, and matures on January 1, 2023. Interest is paid semiannually, and the effective yield to maturity is 8% compounded semiannually. On July 1, 2019, Sam sells the bond for $441,202. A schedule of interest amortization for the bond follows: (Click the icon to view the interest amortization schedule.) Read the requirements. Requirement a. How much interest income must Sam recognize in 2018? The amount of interest income that Sam must recognize in 2018 is Requirement b. How much interest income must Sam recognize in 2019? The amount of interest income that Sam must recognize in 2019 is Requirement c. How much gain must Sam recognize in 2019 on the sale of the bond? The amount of gain that Sam must recognize on the sale of the bond in 2019 is Enter any number in the edit fields and then continue to the nextStep by Step Solution
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