12A. On December 31, 2018, when the market interest rate is 16%, Carter Corporation issues $150,000...
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12A. On December 31, 2018, when the market interest rate is 16%, Carter Corporation issues $150,000 of 6%, 14-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) Value X Value X X Factor X Now calculate the present value of the stated interest. (Enter factor amounts to three decimal places, X.XXX.) ( ) X PV of stated interest ) X Semiannual interest rate % = Finally, calculate the present value of bonds payable. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) PV of principal Factor = = 12A. On December 31, 2018, when the market interest rate is 16%, Carter Corporation issues $150,000 of 6%, 14-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) Value X Value X X Factor X Now calculate the present value of the stated interest. (Enter factor amounts to three decimal places, X.XXX.) ( ) X PV of stated interest ) X Semiannual interest rate % = Finally, calculate the present value of bonds payable. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) PV of principal Factor = =
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Related Book For
Horngrens Financial and Managerial Accounting The Financial Chapters
ISBN: 978-0134486857
6th edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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