What is the interest income/revenue earned on 12/31/20X1?

What is the Fair Value Adjustment journal entry on 12/31/20X1 to mark the investment to market (after your interest payment), if any is made?

 

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USE THE FOLLOWING INFORMATION FOR QUESTIONS #8 - #9: Price of Bonds Purchased at Issuance Face Value of the Bonds Stated Interest Rate Market Interest Rate at the Purchase Date of the Bonds Market Interest Rate at 12/31/20X1 Present Value of $1 at i = 9.00% and n = = 2. Present Value of $1 at i = 4.50% and n = 4. Present Value of an Ordinary Annuity of $1 at i = 9.00% and n = = 2. Present Value of an Ordinary Annuity of $1 at i = 4.50% and n = 4. Assume the Bond was bought on January 1, 20X1 and pays interest semi-annually for 3 years Assume we have classified this investment as: $1,139,097 $1,200,000 8.00% 10.00% 9.00% 0.84168 0.83856 1.75911 3.58753 Trading Security USE THE FOLLOWING INFORMATION FOR QUESTIONS #8 - #9: Price of Bonds Purchased at Issuance Face Value of the Bonds Stated Interest Rate Market Interest Rate at the Purchase Date of the Bonds Market Interest Rate at 12/31/20X1 Present Value of $1 at i = 9.00% and n = = 2. Present Value of $1 at i = 4.50% and n = 4. Present Value of an Ordinary Annuity of $1 at i = 9.00% and n = = 2. Present Value of an Ordinary Annuity of $1 at i = 4.50% and n = 4. Assume the Bond was bought on January 1, 20X1 and pays interest semi-annually for 3 years Assume we have classified this investment as: $1,139,097 $1,200,000 8.00% 10.00% 9.00% 0.84168 0.83856 1.75911 3.58753 Trading Security

Answer rating: 100% (QA)

Question 8 Calculate interest incomerevenue earned on 123120X1 Stated Interest Rate 800 or 008 Face ... View the full answer