![maddy121209](/avatars/2404.jpg)
maddy121209
02.12.2020 •
Business
At the beginning of 2017, Wallace Corporation issued 10% bonds with a face value of $6,000,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5,558,400 to yield 12%. Wallace uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2017? (Round your answer to the nearest dollar.)
Solved
Show answers
More tips
- F Food and Cooking How to Make Delicious Plov: Secrets and Recipes...
- S Sport How to Learn to Pull Up on Monkey Bars?...
- L Leisure and Entertainment Scrapbooking: What is it and Why is it Becoming More Popular?...
- C Computers and Internet Where did torrents.ru move to?...
- B Business and Finance Understanding Cash Flow: What It Is and How It Works...
- C Computers and Internet What Are Peers and Seeds in Torrenting?...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- G Goods and services How to Choose the Right High Chair for Your Baby?...
- S Style and Beauty Learn how to tie a keffiyeh on your head like a pro...
Answers on questions: Business
- B Business Farmer Jack is a watermelon farmer. If Jack plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 30 watermelons. If he plants 2 bags...
- B Biology Compare and contrast members of order squamata with members of order sphenodonta...
- M Mathematics True or false all odd numbers are divisible by 3...
- C Chemistry Dibuja un átomo de nitrógeno con 7 protones 7 neutrones y electrones ?...
- H History How did thinking on government change during the renaissance?...
Ответ:
$669,018
Explanation:
The computation of the interest expense reported is shown below:
Date Interest Payment Interest Amortization of Balance Book
(Face Value × Expense [B] Bond Discount value
Coupon Rate (A-B) of
× 1 ÷ 2) [A] Bonds
02-Jan-17 $441,600$5,558,400
30-Jun-17 $300,000 $333,504 $33,504 $408,096 $5,591,904
(6,000,000 ×10% ×1 ÷ 2) ($5,558,400 × 12% ($441,600 - $33,504)
× 1 ÷ 2) (5,558,400 + 33504)
31-Dec-17 $300,000 $335,514
($6,000,000 × 10% ×1 ÷ 2) ($5,591,904 × 12% ×1 ÷ 2)
The total amount of interest expense is
= $333,504 + $335,514
= $669,018
Ответ:
It is common to speak of three systematic sources of value change in adulthood: historical events that impact on specific age cohorts (e.g., war, depression), physical ageing (e.g., loss of strength or memory), and life stage (e.g., child rearing, widowhood). Each of these sources affects value-relevant experiences.
Explanation: