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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
On January 1, 2018, Planet Corporation issued $1,000,000 of its 10-year, 9% bonds (interest paid annually) to yield 8%. The present value of $1 at 9% for 10 years is 0.4224, and the present value of an ordinary annuity of $1 at 9% for 10 years is 6.4177. The present value of $1 at 8% for 10 years is 0.4632, and the present value of an ordinary annuity of $1 at 8% for 10 years is 6.7101. Planet paid the underwriter bond issue costs of $35,000. At what amount should Planet report the liability on its balance sheet as of January 1, 2018?
$______________________
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