A company has $10,000 of 10% bonds that mature in 5 years. The company issues these...
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A company has $10,000 of 10% bonds that mature in 5 years. The company issues these bonds on January 1, 2021 at a discount. The balance in the discount account on December 31, 2021 is $220. The bonds are callable at 100 and the market price is 95. The company choses to buy back the bonds on the open market to retire the bonds. 2 3 Calculate the Carrying Value of the Bonds on December 31, 2021. Round your answer to the nearest how dollar and only enter numbers and any commas. DO NOT enter S or decimals. Calculate the Gain on the retirement of the bonds. Round your answer to the nearest how dollar and only enter numbers and any commas. DO NOT enter $ or decimals. A company has $10,000 of 10% bonds that mature in 5 years. The company issues these bonds on January 1, 2021 at a discount. The balance in the discount account on December 31, 2021 is $220. The bonds are callable at 100 and the market price is 95. The company choses to buy back the bonds on the open market to retire the bonds. 2 3 Calculate the Carrying Value of the Bonds on December 31, 2021. Round your answer to the nearest how dollar and only enter numbers and any commas. DO NOT enter S or decimals. Calculate the Gain on the retirement of the bonds. Round your answer to the nearest how dollar and only enter numbers and any commas. DO NOT enter $ or decimals.
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ANSWER To calculate the carrying value of the bonds on December 31 2021 we need to use the str... View the full answer
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