PROBLEM 3 :

PROBLEM3 APPLE CORPORATION): On December 31. 2024 the ball wing information is presented for the various labditasof Apple Corporation Bonds Payable On january 1. BOLL APPLE Corporation bound S year, 4000 convertible bonds at fire value of FLOOD por bond. Interest is to be paid annually in arrears at the soaked coupon rain of The Each bond & convertible, at the holder's option, into 310, P2 par valueordinary shares at anytime up to ataricy. On the dateof bounce, the prevailing market rate for similar debi without the cremerion privilege was I'm On the some days, the market price of one ordinary share was P3 2.50 of the both were commented on December 31, 2804 The relevant present value factors are presented beher Present vallor of 1 at The for S periods Present value of an ordinary annuity of 1 at The for 5 periods Present value of 1 at 9% For 5 periods Present value of an ordinary anmary of 1 at 9stor S perends Lee Liability On December 31. 231, AFILE Corporation signeda 10-year niecancellable Ing agreement on horne livity to be used for is icecream blames una. The agreement provides for oqual annual seal payment of 1721000 inclusive of 124 705 snubary coil, beginning on Dixcomber 31 3031. The sunnge facility has a fair value of P4 404 000 on. December 31,2031 and has an estimated economk Ife of 12 year with an unguaranteed residual value Nace the lorie is non-newable, the storage building will nevert back to the Inworupon termination of the lease The interest mor implick in the lease, which is not known to APPLE Corporation is 11%% The rate of interest that APPLE Corporation would have to borrow the funds necessary to obtain a storage facility of similar value is determined to be India The relevant present value factors are presented beane Prisond valo of an ordinary annuity of ! at IF's for SparkedEARLY Present value of an annuity due of i'm fit for 3 periods 65370 Present value of an ordinary anmary of 1 at 1290 for 10 periods Sbalkan Present value of an manualy due ot I'm 12% for 3 periods Deferred Tax Liability On December 31. 2021, APILE Corporation hada to poorly difference of Pago 0030 related to depreciation on its property, plant and equipment At December 11, 2022 the company had four temporary differsaon is bollown Deposition Isaidit-Ine bracounting pampanand serrated for us purpose Ino o when aimed for accounting purpain and when needed br max when incurred bar accounting purposes and when paid for tax purposesl Developments compa praised and amonked over future periods for accounting purposes but diesindied when puld for tax purposes The company BAN foral periods