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Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 402 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
QUATRO CO. ISSUES BONDS DATED JANUARY 1, 2013, WITH A PAR VALUE OF $400,000. THE BONDS' ANNUAL CONTRACT RATE IS 13%, AND INTEREST IS PAID SEMIANNUALLY ON JUNE 30 AND DECEMBER 31. THE BONDS MATURE IN THREE YEARS. THE ANNUAL MARKET RATE AT THE DATE OF ISSUANCE IS 12%, AND THE BONDS ARE SOLD FOR $409,850.
1. WHAT IS THE AMOUNT OF THE PREMIUM ON THESE BONDS AT ISSUANCE?
2. HOW MUCH TOTAL BOND INTEREST EXPENSE WILL BE RECOGNIZED OVER THE LIFE OF THESE BONDS?
3. PREPARE AN AMORTIZATION TABLE FOR THESE BONDS USING THE STRAIGHT-LINE METHOD TO AMORTIZE THE PREMIUM.
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