On January $1,2023,$ Cheyenne Corporation purchased a $$1,140,000$ b$$nd issued by ALN Ltd$.$ The bond was due to mature on December $31,2025,$ and paid interest at $6\%$ every June $30$ and December $31.$ The market interest rate was $8\%.$ Cheyenne had both the intention and ability to hold the bond until its maturity date.

On January $1,2025,$ Cheyenne became aware that ALN was experiencing severe financial difficulties. After discussing the situation with ALN and some of the other creditors, Cheyenne believed that ALN would now be able to repay only $$1,026,000$ of the original $$1,140,000$ bond. $($The tables in this problem are to be used as a reference for this problem.$)$

Table A$-2$

PRESENT VALUE OF $1$

$($PRESENT VALUE OF A SINGLE SUM$)$

$PV{F}_{n,i}=\frac{1}{(1+i{)}^n}=(1+i{)}^{-n}$

Your answer is correct.

Calculate the purchase price of the bond using A$-2$ and A$-4$ Tables, a financial calculator or Excel functions. $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $2$ decimal places, e$.$g$.5,275\mathrm{.}36.)$

Purchase price $

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$($b$)$

Your answer is correct.

Calculate the carrying amount of the bond on January $1,2025$ by preparing a bond amortizable table. $($Round answer to $2$ decimal places, e$.$g$.5,275\mathrm{.}36.)$

Carrying amount

$

$1118492\mathrm{.}61$

Calculate the revised present value of the bond at January $1,2025$ using A$-2$ and A$-4$ Tables, a financial calculator or Excel functions. $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $2$ decimal places, e$.$g$.5,275\mathrm{.}36.)$

Revised present value $

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$($d$)$

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