Persimmon Inc. issues a bond with a $100,000 face value. The bond matures in

three (3) years. The stated interest rate is 9% and the market interest rate is 12%. Interest payments are made every 6 months.

a.Calculate the present value of the bond.

b.Record the journal entry for the issuance of the bond

c.Use the effective interest method to amortize the bond. You should show the interest expense, discount amortization, unamortized discount, and the bond carrying value for each of the interest payments during the 3 year life of the bond.

d.Assume that Persimmon retired the bond after 2 years (after the fourth interest payment). Provide the journal entry if the redemption price of the bond is $102,000.

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S S $ (Amounts in millions, except per share data) Net sales Cost of goods sold Gross profit Operating expenses Operating earnings before financial services 2019 3,730.0 (1.886.0) 1,844.0 (1.127.6) 716.4 2018 3,740.7 (1.870.7) 1,870.0 (1.144.0) 726.0 2017 3,686.9 (1,861.0) 1,825.9 (1,161.3) 664.6 Financial services revenue Financial services expenses Operating earnings from financial services 337.7 (91.8) 245.9 329.7 (99.6) 230.1 313.4 (95.9) 217.5 Operating earnings Interest expense Other income (expense) - net Earnings before income taxes and equity earnings Income tax expense Earnings before equity earnings Equity earnings, net of tax Net earnings Net earnings attributable to noncontrolling interests Net earnings attributable to Snap-on Incorporated 962.3 (49.0) 8.8 922.1 (211.8) 710.3 956.1 (50.4) 4.2 909.9 (214.4) 695.5 0.7 696,2 (16.3) 679.9 882.1 (52.4) (7.8) 821.9 (250.9) 571.0 1.2 572.2 0.9 711.2 (17.7) 693.5 (14.5) 557.7 $ $