PowerTap Utilities is planning to issue bonds with a face value of $2,300,000 and a coupon...

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PowerTap Utilities is planning to issue bonds with a face value of $2,300,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 8 percent. (FV of $1. PV of $1. FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. P10-6 Part 4 4. What is the book value of the bonds on June 30 and December 31 of this year? Note: Round your final answers to nearest whole dollar amount. June 30 Bonds payable December 31 TABLE E.1 Present Value of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 1 0.99010 0.98039 0.97087 0.96386 0.96154 0.95923 0.95238 094340 0.93458 2 0.98030 0.96117 0.94260 0.92902 0.92456 0.92013 0.90703 0.89000 087344 3 0.97059 0.94232 0.91514 0.89544 0.88900 0.88262 0.86384 0.83962 0.81630 4 0.96098 0.92385 0.88849 0.86307 0.85480 0.84663 0.82270 0.79209 0.76290 5 0.95147 0.90573 0.86261 0.83188 0.82193 0.81212 0.78353 0.74726 0.71299 6 0.94205 0.88797 0.83748 0.80181 0.79031 0.77901 0.74622 0.70496 0.66634 7 0.93272 0.87056 0.81309 0.77283 0.75992 0.74725 0.71068 0.66506 0.62275 8 0.92348 0.85349 0.78941 0.74490 0.73069 0.71679 0.67684 0.62741 0.58201 9 0.91434 0.83676 0.76642 0.71797 0.70259 0.68757 0.64461 0.59190 0.54393 10 0.90529 0.82035 0.74409 0.69202 0.67556 0.65954 0.61391 0.55839 0.50835 Present Value of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 11 0.89632 0.80426 0.72242 0.66701 0.64958 0.63265 0.58468 052679 0.47509 12 0.88745 0.78849 0.70138 0.64290 0.62460 0.60686 0.55684 0.49697 0.44401 13 0.87866 0.77303 0.68095 0.61966 0.60057 0.58212 0.53032 0.46884 0.41496 14 0.86996 0.75788 0.66112 0.59726 0.57748 0.55839 0.50507 0.44230 0.38782 15 0.86135 0.74301 0.64186 0.57568 0.55526 0.53562 0.48102 0.41727 0.36245 16 0.85282 0.72845 0.62317 0.55487 0.53391 0.51379 0.45811 0.39365 0.33873 17 0.84438 0.71416 0.60502 0.53481 0.51337 0.49284 0.43630 0.37136 0.31657 18 0.83602 0.70016 0.58739 0.51548 0.49363 0.47275 0.41552 0.35034 0.29586 19 0.82774 0.68643 0.57029 0.49685 0.47464 0.45348 0.39573 0.33051 0.27651 20 0.81954 0.67297 0.55368 0.47889 0.45639 0.43499 0.37689 0.31180 0.25842 25 0.77977 0.60953 0.47761 0.39838 0.37512 0.35326 0.29530 0.23300 0.18425 30 0.74192 0.55207 0.41199 0.33140 0.30832 0.28689 0.23138 0.17411 0.13137 Present Value of $1 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% 1 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 0.86957 0.83333 080000 2 0.85734 0.84168 0.82545 0.81162 0.79719 0.78315 0.76947 0.75614 0.69444 0.64000 3 0.79383 0.77218 0.75131 0.73119 0.71178 0.69305 0.67497 0.65752 0.57870 0.51200 4 0.73503 0.70843 0.68301 0.65873 0.63552 0.61332 0.59208 0.57175 0.48225 0.40960 5 0.68058 0.64993 0.62092 0.59345 0.56743 0.54276 0.51937 0.49718 0.40188 0.32768 6 0.63017 0.59627 0.56447 0.53464 0.50663 0.48032 0.45559 0.43233 0.33490 0.26214 7 0.58349 0.54703 0.51316 0.48166 0.45235 0.42506 0.39964 0.37594 0.27908 0.20972 8 0.54027 0.50187 0.46651 0.43393 0.40388 0.37616 0.35056 0.32690 0.23257 0.16777 9 0.50025 0.46043 0.42410 0.39092 0.36061 0.33288 0.30751 0.28426 0.19381 0.13422 10 0.46319 0.42241 0.38554 0.35218 0.32197 0.29459 0.26974 0.24718 0.16151 0.10737 Present Value of $1 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% 11 0.42888 0.38753 0.35049 0.31728 0.28748 0.26070 0.23662 0.21494 0.13459 0.08590 12 0.39711 0.35553 0.31863 0.28584 0.25668 0.23071 0.20756 0.18691 0.11216 0.06872 13 0.36770 0.32618 0.28966 0.25751 0.22917 0.20416 0.18207 0.16253 0.09346 0.05498 14 0.34046 0.29925 0.26333 0.23199 0.20462 0.18068 0.15971 0.14133 0.07789 0.04398 15 0.31524 0.27454 0.23939 0.20900 0.18270 0.15989 0.14010 0.12289 0.06491 0.03518 16 0.29189 0.25187 0.21763 0.18829 0.16312 0.14150 0.12289 0.10686 0.05409 0.02815 17 0.27027 0.23107 0.19784 0.16963 0.14564 0.12522 0.10780 0.09293 0.04507 0.02252 18 0.25025 0.21199 0.17986 0.15282 0.13004 0.11081 0.09456 0.08081 0.03756 0.01801 19 0.23171 0.19449 0.16351 0.13768 0.11611 0.09806 0.08295 0.07027 0.03130 0.01441 20 0.21455 0.17843 0.14864 0.12403 0.10367 0.08678 0.07276 0.06110 0.02608 0.01153 25 0.14602 0.11597 0.09230 0.07361 0.05882 0.04710 0.03779 0.03038 0.01048 0.00378 30 0.09938 0.07537 0.05731 0.04368 0.03338 0.02557 0.01963 0.01510 0.00421 0.00124 E-1 TABLE E.2 Present Value of Annuity of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 1 0.99010 0.98039 0.97087 0.96386 0.96154 0.95923 0.95238 094340 0.93458 2 1.97040 1.94156 1.91347 1.89287 1.88609 1.87936 1.85941 1.83339 1.80802 3 2.94099 2.88388 2.82861 2.78831 2.77509 2.76198 2.72325 2.67301 2.62432 4 3.90197 3.80773 3.71710 3.65138 3.62990 3.60861 3.54595 3.46511 3.38721 5 4.85343 4.71346 4.57971 4.48326 4.45182 4.42073 4.32948 4.21236 4.10020 6 5.79548 5.60143 5.41719 5.28507 5.24214 5.19974 5.07569 4.91732 4.76654 7 6.72819 6.47199 6.23028 6.05790 6.00205 594699 5.78637 5.58238 5.38929 8 7.65168 7.32548 7.01969 6.80280 6.73274 6.66378 6.46321 6.20979 5.97130 9 8.56602 8.16224 7.78611 7.52077 7.43533 7.35135 7.10782 6.80169 6.51523 10 9.47130 8.98259 8.53020 8.21279 8.11090 8.01089 7.72173 7.36009 7.02358 Present Value of Annuity of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 12 123 11 10.36763 9.78685 9.25262 8.87979 8.76048 8.64354 8.30641 7.88687 7.49867 11.25508 10.57534 9.95400 9.52269 9.38507 9.25039 8.86325 8.38384 7.94269 13 12.13374 11.34837 10.63496 10.14236 9.98565 9.83251 9.39357 8.85268 8.35765 14 13.00370 12.10625 11.29607 10.73962 10.56312 10.39090 9.89864 9.29498 8.74547 15 13.86505 12.84926 11.93794 11.31530 11.11839 10.92652 10.37966 9.71225 9.10791 16 14.71787 13.57771 12.56110 11.87017 11.65230 11.44031 10.83777 10.10590 9.44665 17 15.56225 14.29187 13.16612 12.40498 12.16567 11.93315 11.27407 10.47726 9.76322 18 16.39827 14.99203 13.75351 12.92046 12.65930 12.40590 11.68959 10.82760 10.05909 19 17.22601 15.67846 14.32380 13.41731 13.13394 12.85938 12.08532 11.15812 10.33560 20 18.04555 16.35143 14.87747 13.89620 13.59033 13.29437 12.46221 11.46992 10.59401 25 22.02316 19.52346 17.41315 16.04320 15.62208 15.21734 14.09394 12.78336 11.65358 30 25.80771 22.39646 19.60044 17.82925 17.29203 16.77902 15.37245 13.76483 12.40904 Present Value of Annuity of $1 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% 1 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 0.86957 0.83333 0.80000 2 1.78326 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666 1.62571 1.52778 1.44000 3 2.57710 2.53129 2.48685 2.44371 2.40183 2.36115 2.32163 2.28323 2.10648 1.95200 4 3.31213 3.23972 3.16987 3.10245 3.03735 2.97447 291371 2.85498 2.58873 2.36160 5 3.99271 3.88965 3.79079 3.69590 3.60478 3.51723 343308 3.35216 2.99061 2.68928 6 4.62288 4.48592 4.35526 4.23054 4.11141 3.99755 3.88867 3.78448 3.32551 2.95142 7 5.20637 5,03295 4.86842 4.71220 4.56376 4,42261 4.28830 4.16042 360459 3.16114 8 5.74664 5.53482 5.33493 5.14612 4.96764 4.79877 4.63886 4.48732 3.83716 3.32891 9 6.24689 5.99525 5.75902 5.53705 5.32825 5.13166 494637 4.77158 403097 3.46313 10 6.71008 6.41766 6.14457 5.88923 5.65022 5.42624 5.21612 5.01877 4.19247 3.57050 Present Value of Annuity of $1 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% #22% 11 7.13895 6.80519 6.49506 6.20652 5.93770 5.68694 545273 5.23371 432706 3.65640 12 7.53608 7.16073 6.81369 6.49236 6.19437 5.91765 5.66029 5.42062 4.43922 3.72512 13 7.90378 7.48690 7.10336 6.74987 6.42355 6.12181 5.84236 5.58315 453268 3.78010 14 8.24424 7.78615 7.36669 6.98187 6.62817 6.30249 6.00207 5.72448 4.61057 3.82408 15 8.55948 8.06069 7.60608 7.19087 6.81086 6.46238 6.14217 5.84737 4.67547 3.85926 16 8.85137 8.31256 7.82371 7.37916 6.97399 6.60388 6.26506 5.95423 4.72956 3.88741 17 9.12164 8.54363 8.02155 7.54879 7.11963 6.72909 6.37286 604716 4.77463 3.90993 18 9.37189 8.75563 8.20141 7.70162 7.24967 6.83991 6.46742 6.12797 4.81219 3.92794 19 9.60360 8.95011 8.36492 7.83929 7.36578 6.93797 6.55037 6.19823 484350 3.94235 20 9.81815 9.12855 8.51356 7.96333 7,46944 7.02475 6.62313 6.25933 4.86958 3.95388 25 10.67478 9.82258 9.07704 8.42174 7.84314 7.32998 6.87293 6.46415 4.94759 3.98489 30 11.25778 10.27365 9.42691 8.69379 8.05518 7.49565 7.00266 6.56598 4.97894 3.99505 PowerTap Utilities is planning to issue bonds with a face value of $2,300,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 8 percent. (FV of $1. PV of $1. FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. P10-6 Part 4 4. What is the book value of the bonds on June 30 and December 31 of this year? Note: Round your final answers to nearest whole dollar amount. June 30 Bonds payable December 31 TABLE E.1 Present Value of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 1 0.99010 0.98039 0.97087 0.96386 0.96154 0.95923 0.95238 094340 0.93458 2 0.98030 0.96117 0.94260 0.92902 0.92456 0.92013 0.90703 0.89000 087344 3 0.97059 0.94232 0.91514 0.89544 0.88900 0.88262 0.86384 0.83962 0.81630 4 0.96098 0.92385 0.88849 0.86307 0.85480 0.84663 0.82270 0.79209 0.76290 5 0.95147 0.90573 0.86261 0.83188 0.82193 0.81212 0.78353 0.74726 0.71299 6 0.94205 0.88797 0.83748 0.80181 0.79031 0.77901 0.74622 0.70496 0.66634 7 0.93272 0.87056 0.81309 0.77283 0.75992 0.74725 0.71068 0.66506 0.62275 8 0.92348 0.85349 0.78941 0.74490 0.73069 0.71679 0.67684 0.62741 0.58201 9 0.91434 0.83676 0.76642 0.71797 0.70259 0.68757 0.64461 0.59190 0.54393 10 0.90529 0.82035 0.74409 0.69202 0.67556 0.65954 0.61391 0.55839 0.50835 Present Value of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 11 0.89632 0.80426 0.72242 0.66701 0.64958 0.63265 0.58468 052679 0.47509 12 0.88745 0.78849 0.70138 0.64290 0.62460 0.60686 0.55684 0.49697 0.44401 13 0.87866 0.77303 0.68095 0.61966 0.60057 0.58212 0.53032 0.46884 0.41496 14 0.86996 0.75788 0.66112 0.59726 0.57748 0.55839 0.50507 0.44230 0.38782 15 0.86135 0.74301 0.64186 0.57568 0.55526 0.53562 0.48102 0.41727 0.36245 16 0.85282 0.72845 0.62317 0.55487 0.53391 0.51379 0.45811 0.39365 0.33873 17 0.84438 0.71416 0.60502 0.53481 0.51337 0.49284 0.43630 0.37136 0.31657 18 0.83602 0.70016 0.58739 0.51548 0.49363 0.47275 0.41552 0.35034 0.29586 19 0.82774 0.68643 0.57029 0.49685 0.47464 0.45348 0.39573 0.33051 0.27651 20 0.81954 0.67297 0.55368 0.47889 0.45639 0.43499 0.37689 0.31180 0.25842 25 0.77977 0.60953 0.47761 0.39838 0.37512 0.35326 0.29530 0.23300 0.18425 30 0.74192 0.55207 0.41199 0.33140 0.30832 0.28689 0.23138 0.17411 0.13137 Present Value of $1 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% 1 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 0.86957 0.83333 080000 2 0.85734 0.84168 0.82545 0.81162 0.79719 0.78315 0.76947 0.75614 0.69444 0.64000 3 0.79383 0.77218 0.75131 0.73119 0.71178 0.69305 0.67497 0.65752 0.57870 0.51200 4 0.73503 0.70843 0.68301 0.65873 0.63552 0.61332 0.59208 0.57175 0.48225 0.40960 5 0.68058 0.64993 0.62092 0.59345 0.56743 0.54276 0.51937 0.49718 0.40188 0.32768 6 0.63017 0.59627 0.56447 0.53464 0.50663 0.48032 0.45559 0.43233 0.33490 0.26214 7 0.58349 0.54703 0.51316 0.48166 0.45235 0.42506 0.39964 0.37594 0.27908 0.20972 8 0.54027 0.50187 0.46651 0.43393 0.40388 0.37616 0.35056 0.32690 0.23257 0.16777 9 0.50025 0.46043 0.42410 0.39092 0.36061 0.33288 0.30751 0.28426 0.19381 0.13422 10 0.46319 0.42241 0.38554 0.35218 0.32197 0.29459 0.26974 0.24718 0.16151 0.10737 Present Value of $1 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% 11 0.42888 0.38753 0.35049 0.31728 0.28748 0.26070 0.23662 0.21494 0.13459 0.08590 12 0.39711 0.35553 0.31863 0.28584 0.25668 0.23071 0.20756 0.18691 0.11216 0.06872 13 0.36770 0.32618 0.28966 0.25751 0.22917 0.20416 0.18207 0.16253 0.09346 0.05498 14 0.34046 0.29925 0.26333 0.23199 0.20462 0.18068 0.15971 0.14133 0.07789 0.04398 15 0.31524 0.27454 0.23939 0.20900 0.18270 0.15989 0.14010 0.12289 0.06491 0.03518 16 0.29189 0.25187 0.21763 0.18829 0.16312 0.14150 0.12289 0.10686 0.05409 0.02815 17 0.27027 0.23107 0.19784 0.16963 0.14564 0.12522 0.10780 0.09293 0.04507 0.02252 18 0.25025 0.21199 0.17986 0.15282 0.13004 0.11081 0.09456 0.08081 0.03756 0.01801 19 0.23171 0.19449 0.16351 0.13768 0.11611 0.09806 0.08295 0.07027 0.03130 0.01441 20 0.21455 0.17843 0.14864 0.12403 0.10367 0.08678 0.07276 0.06110 0.02608 0.01153 25 0.14602 0.11597 0.09230 0.07361 0.05882 0.04710 0.03779 0.03038 0.01048 0.00378 30 0.09938 0.07537 0.05731 0.04368 0.03338 0.02557 0.01963 0.01510 0.00421 0.00124 E-1 TABLE E.2 Present Value of Annuity of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 1 0.99010 0.98039 0.97087 0.96386 0.96154 0.95923 0.95238 094340 0.93458 2 1.97040 1.94156 1.91347 1.89287 1.88609 1.87936 1.85941 1.83339 1.80802 3 2.94099 2.88388 2.82861 2.78831 2.77509 2.76198 2.72325 2.67301 2.62432 4 3.90197 3.80773 3.71710 3.65138 3.62990 3.60861 3.54595 3.46511 3.38721 5 4.85343 4.71346 4.57971 4.48326 4.45182 4.42073 4.32948 4.21236 4.10020 6 5.79548 5.60143 5.41719 5.28507 5.24214 5.19974 5.07569 4.91732 4.76654 7 6.72819 6.47199 6.23028 6.05790 6.00205 594699 5.78637 5.58238 5.38929 8 7.65168 7.32548 7.01969 6.80280 6.73274 6.66378 6.46321 6.20979 5.97130 9 8.56602 8.16224 7.78611 7.52077 7.43533 7.35135 7.10782 6.80169 6.51523 10 9.47130 8.98259 8.53020 8.21279 8.11090 8.01089 7.72173 7.36009 7.02358 Present Value of Annuity of $1 Periods 1.0% 2.0% 3.0% 3.75% 4.0% 4.25% 5.0% 6.0% 7.0% 12 123 11 10.36763 9.78685 9.25262 8.87979 8.76048 8.64354 8.30641 7.88687 7.49867 11.25508 10.57534 9.95400 9.52269 9.38507 9.25039 8.86325 8.38384 7.94269 13 12.13374 11.34837 10.63496 10.14236 9.98565 9.83251 9.39357 8.85268 8.35765 14 13.00370 12.10625 11.29607 10.73962 10.56312 10.39090 9.89864 9.29498 8.74547 15 13.86505 12.84926 11.93794 11.31530 11.11839 10.92652 10.37966 9.71225 9.10791 16 14.71787 13.57771 12.56110 11.87017 11.65230 11.44031 10.83777 10.10590 9.44665 17 15.56225 14.29187 13.16612 12.40498 12.16567 11.93315 11.27407 10.47726 9.76322 18 16.39827 14.99203 13.75351 12.92046 12.65930 12.40590 11.68959 10.82760 10.05909 19 17.22601 15.67846 14.32380 13.41731 13.13394 12.85938 12.08532 11.15812 10.33560 20 18.04555 16.35143 14.87747 13.89620 13.59033 13.29437 12.46221 11.46992 10.59401 25 22.02316 19.52346 17.41315 16.04320 15.62208 15.21734 14.09394 12.78336 11.65358 30 25.80771 22.39646 19.60044 17.82925 17.29203 16.77902 15.37245 13.76483 12.40904 Present Value of Annuity of $1 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% 1 0.92593 0.91743 0.90909 0.90090 0.89286 0.88496 0.87719 0.86957 0.83333 0.80000 2 1.78326 1.75911 1.73554 1.71252 1.69005 1.66810 1.64666 1.62571 1.52778 1.44000 3 2.57710 2.53129 2.48685 2.44371 2.40183 2.36115 2.32163 2.28323 2.10648 1.95200 4 3.31213 3.23972 3.16987 3.10245 3.03735 2.97447 291371 2.85498 2.58873 2.36160 5 3.99271 3.88965 3.79079 3.69590 3.60478 3.51723 343308 3.35216 2.99061 2.68928 6 4.62288 4.48592 4.35526 4.23054 4.11141 3.99755 3.88867 3.78448 3.32551 2.95142 7 5.20637 5,03295 4.86842 4.71220 4.56376 4,42261 4.28830 4.16042 360459 3.16114 8 5.74664 5.53482 5.33493 5.14612 4.96764 4.79877 4.63886 4.48732 3.83716 3.32891 9 6.24689 5.99525 5.75902 5.53705 5.32825 5.13166 494637 4.77158 403097 3.46313 10 6.71008 6.41766 6.14457 5.88923 5.65022 5.42624 5.21612 5.01877 4.19247 3.57050 Present Value of Annuity of $1 Periods 8.0% 9.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 20.0% 25.0% #22% 11 7.13895 6.80519 6.49506 6.20652 5.93770 5.68694 545273 5.23371 432706 3.65640 12 7.53608 7.16073 6.81369 6.49236 6.19437 5.91765 5.66029 5.42062 4.43922 3.72512 13 7.90378 7.48690 7.10336 6.74987 6.42355 6.12181 5.84236 5.58315 453268 3.78010 14 8.24424 7.78615 7.36669 6.98187 6.62817 6.30249 6.00207 5.72448 4.61057 3.82408 15 8.55948 8.06069 7.60608 7.19087 6.81086 6.46238 6.14217 5.84737 4.67547 3.85926 16 8.85137 8.31256 7.82371 7.37916 6.97399 6.60388 6.26506 5.95423 4.72956 3.88741 17 9.12164 8.54363 8.02155 7.54879 7.11963 6.72909 6.37286 604716 4.77463 3.90993 18 9.37189 8.75563 8.20141 7.70162 7.24967 6.83991 6.46742 6.12797 4.81219 3.92794 19 9.60360 8.95011 8.36492 7.83929 7.36578 6.93797 6.55037 6.19823 484350 3.94235 20 9.81815 9.12855 8.51356 7.96333 7,46944 7.02475 6.62313 6.25933 4.86958 3.95388 25 10.67478 9.82258 9.07704 8.42174 7.84314 7.32998 6.87293 6.46415 4.94759 3.98489 30 11.25778 10.27365 9.42691 8.69379 8.05518 7.49565 7.00266 6.56598 4.97894 3.99505