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what is the carrying value of the 6/30 period? On June 30, 2021, Singleton Computers issued 8% stated rate bonds with a face amount of
what is the carrying value of the 6/30 period?
On June 30, 2021, Singleton Computers issued 8% stated rate bonds with a face amount of $100 million. The bonds mature on June 30, 2036 (15 years). The market rate of interest for similar bond issues was 6% (3.0% semiannual rate). Interest is paid semiannually (4.0%) on June 30 and December 31, beginning on December 31, 2021 (EV of $1. PV of $1. EVA. S1. PVA of $1. VAD of S1 and PVAD o SD (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds on June 30, 2021 2. Calculate the interest expense Singleton reports in 2021 for these bonds using the effective interest method, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the interest expense Singleton reports in 2021 for these bonds using the effective interest method. (Enter your answers in whole dollars. Round your final answers to nearest whole dollar amount.) Premium Period-End Cash Interest Bond Interest Pald Expenne Amortization Carrying Valu 06/30/2021 12/31/2021 $ 4,000,000 $3,588,0233 411,977 (411,977) Step by Step Solution
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