Homework Answers
| Interest paid in cash =$313,000*8% =$25,040 | ||
| Interest expense recognized by bond issuer =$293,000*11% =$32,230 | ||
| Carrying value of Bond as on Dec 31,2021 =$293,000 + $32,230 - $25,040 =$300,190 | ||
| Interest income for 2022 =$300,190*11% =$33,021 | ||
| So Option B is the answer | ||
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Help Save & Submit On January 1, 2021, an investor paid $293.000 for bonds with a...
On January 1, 2021, an investor paid $291,000 for bonds with a face amount of $300,000....
On January 1, 2021, an investor paid $291,000 for bonds with a face amount of $300,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2022 (assume annual interest payments and amortization)? Multiple Choice $23,280. $25,140. $29,100. $29,610.
On January 1, 2021, an investor paid $304,000 for bonds with a face amount of $355.000....
On January 1, 2021, an investor paid $304,000 for bonds with a face amount of $355.000. The stated rate of interest is 11% while the current market rate of interest Is 13%. Using the effective interest method, how much interest income is recognized by the investor in 2021 (assume annual interest payments and amortization? Multiple Choice $39,050 $46,150 $33,440 $39,520
On January 1, 2021, an investor paid $298,000 for bonds with a foce amount of $318,000....
On January 1, 2021, an investor paid $298,000 for bonds with a foce amount of $318,000. The contract rate of interest is 11 while the current market rate of interest is 14 Using the effective interest method, how much interest income is recognized by the investor in 2022 assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.) o o s2лво o 53A480 o S2664 < Prev 30 of 34 8 Next > e to search...
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On January 1, 2021, an investor paid $304,000 for bonds with a face amount of $355.000. The stated rate of interest is 11% while the current market rate of interest Is 13%. Using the effective interest method, how much interest income is recognized by the investor in 2021 (assume annual interest payments and amortization? Multiple Choice $39,050 $46,150 $33,440 $39,520
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