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Not AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Maturities (1) 2022 2024-2044 2023-2057 2012 Bonds issuance 2014 Notes issuance 2017 Notes issuance 2020 Notes issuance 2021 Notes issuance 2023-2061 Total face value of long-term debt Unamortized discount 2023-2060 Stated Interest Rates 2.50% O $1,250 million O $1,233 million O $1,233.85 million O $1,251.7 million 3.80% -4.95% 2.40% -5.20% 0.40% -2.70% 0.25% - 3.25% Less current portion of long-term debt Total carrying value of long-term debt (1) Interest on the Bonds and Notes is payable semi-annually. Effective Interest Rates 2.66% 3.90%-5.11% 2.56% -4.33% 0.56% -2.77% 0.35%-3.31% December 31, 2021 S 1,250 4,000 16,000 10,000 18,500 50,553 (318) (1,491) 48,744 Focus on the bonds issued in 2012 which will mature in 2022. Amazon issued the 2012 bonds ($1,250 face value, 2.5% stated interest rate) at 98.64% for about $1,233 million because the effective interest rate at the issuance date was 2.66%. If Amazon uses straight-line amortization, what is the carrying value of 2012 bonds after the first interest payment?

Not AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Maturities (1) 2022 2024-2044 2023-2057 2012 Bonds issuance 2014 Notes issuance 2017 Notes issuance 2020 Notes issuance 2021 Notes issuance 2023-2061 Total face value of long-term debt Unamortized discount 2023-2060 Stated Interest Rates 2.50% O $1,250 million O $1,233 million O $1,233.85 million O $1,251.7 million 3.80% -4.95% 2.40% -5.20% 0.40% -2.70% 0.25% - 3.25% Less current portion of long-term debt Total carrying value of long-term debt (1) Interest on the Bonds and Notes is payable semi-annually. Effective Interest Rates 2.66% 3.90%-5.11% 2.56% -4.33% 0.56% -2.77% 0.35%-3.31% December 31, 2021 S 1,250 4,000 16,000 10,000 18,500 50,553 (318) (1,491) 48,744 Focus on the bonds issued in 2012 which will mature in 2022. Amazon issued the 2012 bonds ($1,250 face value, 2.5% stated interest rate) at 98.64% for about $1,233 million because the effective interest rate at the issuance date was 2.66%. If Amazon uses straight-line amortization, what is the carrying value of 2012 bonds after the first interest payment?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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No AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Maturities (1) 2022 2024-2044 2023-2057 2023-2060 2023-2061 2012 Bonds issuance 2014 Notes issuance 2017 Notes issuance 2020 Notes issuance 2021 Notes issuance Total face value of long-term debt Unamortized discount O $1,250 million O $1,233 million O $1,233.85 million O $1,251.7 million Stated Interest Rates 2.50% 3.80% -4.95% 2.40% -5.20% 0.40% - 2.70% 0.25% - 3.25% Less current portion of long-term debt Total carrying value of long-term debt (1) Interest on the Bonds and Notes is payable semi-annually. Effective Interest Rates 2.66% 3.90%-5.11% 2.56% -4.33% 0.56% -2.77% 0.35%-3.31% was December 31, 2021 S 1,250 4,000 16,000 10,000 18,500 50,553 (318) (1,491) 48,744 Focus on the bonds issued in 2012 which will mature in 2022. Amazon issued the 2012 bonds ($1,250 face value, 2.5% stated interest rate) at 98.64% for about $1,233 million because the effective interest rate at the issuance date was 2.66%. If Amazon uses straight-line amortization, what is the carrying value of 2012 bonds after the first interest payment?
Transcribed Image Text:No AMAZON.COM, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Maturities (1) 2022 2024-2044 2023-2057 2023-2060 2023-2061 2012 Bonds issuance 2014 Notes issuance 2017 Notes issuance 2020 Notes issuance 2021 Notes issuance Total face value of long-term debt Unamortized discount O $1,250 million O $1,233 million O $1,233.85 million O $1,251.7 million Stated Interest Rates 2.50% 3.80% -4.95% 2.40% -5.20% 0.40% - 2.70% 0.25% - 3.25% Less current portion of long-term debt Total carrying value of long-term debt (1) Interest on the Bonds and Notes is payable semi-annually. Effective Interest Rates 2.66% 3.90%-5.11% 2.56% -4.33% 0.56% -2.77% 0.35%-3.31% was December 31, 2021 S 1,250 4,000 16,000 10,000 18,500 50,553 (318) (1,491) 48,744 Focus on the bonds issued in 2012 which will mature in 2022. Amazon issued the 2012 bonds ($1,250 face value, 2.5% stated interest rate) at 98.64% for about $1,233 million because the effective interest rate at the issuance date was 2.66%. If Amazon uses straight-line amortization, what is the carrying value of 2012 bonds after the first interest payment?
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