Interest payable = $490,000,000 * 4% / 2 = $9,800,000
Interest expense = $417,103,000 * 6% / 2 = $12,513,090
Discount amortized = $12,513,090 - $9,800,000
= $2,713,090
Carrying value after the first interest payment = $417,103,000 + $2,713,090
= $419,816,090
Saved Help Save & Exit #1 Auerbach Inc. issued 4% bonds on October 1, 2021. The...
Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $490 million The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6% Assuming that Auerbach issued the bonds for $417103,000, what would the company report for its net bond ability balance after its first interest payment on March 31, 2022? Saved Не...
Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $450 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $383,053,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022? Multiple Choice...
Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $255,366,000, what would the company report for its net bond liability balance at December 31, 2021, rounded up to the nearest thousand? (Do...
29- Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $440 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $380,204,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022? Multiple...
Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $370 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $314,955,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022? On June...
28- Auerbach Inc. issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 12%. Assuming that Auerbach issued the bonds for $265,590,000, what would the company report for its net bond liability balance at December 31, 2021, rounded up to the nearest thousand?...
Question 20 (1 point) Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. How much cash interest does Auerbach pay on March 31, 2022? $18.0 million. $12.0 million. $6.0 million. $9.0 million.
Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $350 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.) Multiple Choice 0 $10.50 million. 0 $7.00 million. 0 $21.00 million. 0...
Auerbach Inc. Issued 6% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $350 million. The bonds pay Interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8% Assuming that Auerbach issued the bonds for $302.434,965. what interest expense would it recognize in its 2021 income statement? (Do not round intermediate calculations. Round your final answer to nearest...
26- Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $325 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.) Multiple Choice $19.50 million. $6.50 million. $13.00 million. $9.75 million.