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On January 1, 2021, Morton Sales Co. issued zero-coupon bonds with a face value of $6.5 million for cash. The bonds mature in
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Answer #1
Price of zero coupon bond Face value*Present value factor
$2,886,065 6500000*Present value factor
Present value factor 2886065/6500000
Present value factor         0.4440
In case of PV of $1 table and n is 7% 0.4440 would come under I of 7%
Interest expense for 2021 $202,025 2886065*7%
Bonds payable Issue price+Accrued interest
Bonds payable 2886065+202025
Bonds payable $3,088,090
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