Fourteen Company issued $10,000,000 of 8% bonds on January 1, 2015. The bonds pay interest on June 30 and December 31, mature on
December 31, 2024, and are callable at 102. On the issue date, bonds of similar risk and maturity yielded 7%. Fourteen Company called the bonds on January 1, 2017. Fourteen Company accounts for bonds using the effective interest method.
Determine the amount of discount of premium amortization Fourteen would recognize on June 30, 2015. (Round the final answer to the nearest dollar. Do not use dollar signs or commas when inputting the answer
Determine the amount of discount of premium amortization Fourteen would recognize on June 30, 2015. (Round the final answer to the nearest dollar. Do not use dollar signs or commas when inputting the answer
1 answer:
You might be interested in
Answer:
The answer is $126,000
Explanation:
Please find the attached file for the calculation.
