Crane Company sells 8% bonds having a maturity value of $1,420,000 for $1,312,340. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.           Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.) The effective-interest rate      %     LINK TO TEXT       Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548.) Schedule of Discount Amortization Effective-Interest Method Year   Interest Payable   Interest Expense   Discount Amortized   Carrying Amount of Bonds Jan. 1, 2020   $     $     $     $   Dec. 31, 2020                 Dec. 31, 2021                 Dec. 31, 2022                 Dec. 31, 2023                 Dec. 31, 2024

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A:

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Q: On January 1, 2024, Reyes Recreational Products issued $150,000, 9%, four-year bonds. Interest is…

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Q: On December 31, 2018 Brown Company issued $600,000 of 15-year, 11% bonds payable for $558,706,…

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Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…

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Q: Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.