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Arlecino [84]
3 years ago
13

On January 1, 2021, Blake Corporation issued 1,000 of its 9%, $1,000 callable bonds for $1,060,000. The bonds are dated January

1, 2021, and mature on December 31, 2035. Interest is payable semiannually on January 1 and July 1. The bonds can be called by the issuer at 102 on any interest payment date after December 31, 2025. The unamortized bond premium was $16,000 at December 31, 2028, and the market price of the bonds was 99 on this date. In its December 31, 2028, balance sheet, at what amount should Blake report the carrying value of the bonds?
Business
1 answer:
Paul [167]3 years ago
8 0

Answer:

$1,076,000

Explanation:

 The computation of the carrying value of the bonds is shown below:

= Face value of the bond + unamortized bond premium

= $1,060,000 + $16,000

= $1,076,000

We simply added the face value of the bond and the unamortized bond premium so that the carrying value of the bond could come

All other information which is given is not relevant. hence, ignored it

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