Assume that the notes to Pitt Ltd.'s financial statements reported the below data about their $3,200,000 debentures on September 30, 2023. ii (Click the icon to view the financial statement data.) Required Requirement 1. Answer the questions about Pitt's long-term liabilities. a. What is the maturity value of the 6-percent debentures? What is the maturity value of the 6-percent debentures? $ 3,200,000 b. What is the carrying amount of the 6-percent debentures on September 30, 2023? 2024? (Round your answers to the nearest dollar.) What is the carrying amount of 6-percent debentures on September 30, 2023? What is the carrying amount of the 6-percent debentures on September 30, 2024? $ 2,869,261

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Hh1.

 

Financial statement data
NOTE E: LONG-TERM DEBT
6 percent debentures due 2033, net of unamortized-
discount of $330,739 (effective interest rate of 7.0 percent) $ 2,869,261
Pitt Ltd. amortizes the discount by the effective-interest method.
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Transcribed Image Text:Financial statement data NOTE E: LONG-TERM DEBT 6 percent debentures due 2033, net of unamortized- discount of $330,739 (effective interest rate of 7.0 percent) $ 2,869,261 Pitt Ltd. amortizes the discount by the effective-interest method. Print Done X
Assume that the notes to Pitt Ltd.'s financial statements reported the below data about their
$3,200,000 debentures on September 30, 2023.
(Click the icon to view the financial statement data.)
Required
Requirement 1. Answer the questions about Pitt's long-term liabilities.
a. What is the maturity value of the 6-percent debentures?
What is the maturity value of the 6-percent debentures? $ 3,200,000
b. What is the carrying amount of the 6-percent debentures on September 30, 2023? 2024?
(Round your answers to the nearest dollar.)
What is the carrying amount of 6-percent debentures on September 30,
2023?
What is the carrying amount of the 6-percent debentures on September 30,
2024?
$ 2,869,261
Transcribed Image Text:Assume that the notes to Pitt Ltd.'s financial statements reported the below data about their $3,200,000 debentures on September 30, 2023. (Click the icon to view the financial statement data.) Required Requirement 1. Answer the questions about Pitt's long-term liabilities. a. What is the maturity value of the 6-percent debentures? What is the maturity value of the 6-percent debentures? $ 3,200,000 b. What is the carrying amount of the 6-percent debentures on September 30, 2023? 2024? (Round your answers to the nearest dollar.) What is the carrying amount of 6-percent debentures on September 30, 2023? What is the carrying amount of the 6-percent debentures on September 30, 2024? $ 2,869,261
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