Hello

need help for homework....

Ques:1

On June 1, 2016 a 3-year bond was issued to a private investor to fund an

international expansion. The bond had a face value of $800,000 and makes

quarterly interest payments of $24,000 (the first payment was made on time on

September 1, 2016). The bond was sold for $841,031. Also - 123 Inc.s CEO just

attended a corporate finance seminar and learned about bond yields, she would

like you to calculate the yield that her companys bonds offer. (Note: this may

require you to reach beyond the material covered in class.)

Hint: you need to show the journal entries required for the 2016 and 2017 fiscal

year ends, and for each interest payment paid in 2016 and 2017.

question 2:

In order to take advantage of a tax incentive 123 Inc. decided to buy new

machinery on August 1, 2016 which had a cost of $300,000. For income tax

purposes this machinery has a special CCA rate of 45% (the year rule applies).

123 Inc.s corporate tax rate is 20%. The deprecation for accounting purposes is

going to be based on usage. The machinery is expected to have a useful life of

1.3 billion coffee cups produced, and has an expected net salvage value of

$25,000. The expected usage is as follows:

Fiscal year: 2016 2017 2018 2019 2020

# of units: 0.1B 0.2B 0.4B 0.4B 0.2B

On August 1, 2016 the following entry was made:

Dr. Capital assets $300,000

Cr. Accounts payable $300,000

Hint: You will need to calculate depreciation and future taxes. Remember you

need to present both fiscal 2016 and fiscal 2017 calculations.

Please help me anyone...