Suppose, $100,000 of 8% annual coupon rate, 10-year bonds were sold at 105,500. When the market rate
Question:
Suppose, $100,000 of 8% annual coupon rate, 10-year bonds were sold at 105,500. When the market rate of interest was 7%.
Using the effective interest method, the balance in the unamortized bond premium account at the end of the second period would be?
Fly Air Corp. leases an aircraft costing $ 100 million from Boeing under a financial lease agreement. The lease is for a period of 20 years. The aircraft has an economic life of 20 years and is expected to have a residual value of zero after 20 years. The annual interest rate on the lease is 6%. The lease is economically equivalent to a borrow and purchase transaction by Fly Air Corp. Fly Air Corp., therefore, recognizes ROU - Finance Lease asset and ROU - Finance Lease liability on signing of the lease.
The carrying value of the financial lease liability at the end of the 5th year is?
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson