NoleCo issues bonds on January 1, 20X1. The bonds mature ten years from this date and pay interest semi-annually on June 30 and December 31 each year. The face value of the bonds is $800,000 and the coupon/stated rate is 10%. The market rate on the issue date is 11%. The bonds were issued for $752,198. Required: Complete the three parts below. Part A: The interest expense that NoleCo should recognize on June 30, 20X1 is: $40,000 $44,000 $37,610 $42,112 $41,371 Part B: The interest expense that NoleCo should recognize on December 31, 20X1 is: $41,295 $41,446 $40,000 $42,206 $44,000 Part C: The carrying value of these bonds on December 31, 20X1 (after the interest payment on that date) is: $800,000 $753,569 $755,015 $752,198 $756,516
NoleCo issues bonds on January 1, 20X1. The bonds mature ten years from this date and pay interest semi-annually on June 30 and December 31 each year. The face
Required: Complete the three parts below.
Part A: The interest expense that NoleCo should recognize on June 30, 20X1 is:
$40,000
$44,000
$37,610
$42,112
$41,371
Part B: The interest expense that NoleCo should recognize on December 31, 20X1 is:
$41,295
$41,446
$40,000
$42,206
$44,000
Part C: The carrying value of these bonds on December 31, 20X1 (after the interest payment on that date) is:
$800,000
$753,569
$755,015
$752,198
$756,516
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