NY Fitness Company issued $10,000,000, 5-year, 7% callable bond on January 1, 2018 when the market rate of interest was 7%. The bonds will pay interest semiannually. What is the amount of the semiannual interest payments? if the Company calls the bonds due at 99 on December 31, 2020, what would be the gain / loss the Company would record?

Q: LA Fitness Company issued a $10,000,000, 5-year, 7% callable bond on January 1, 2018, when the…

A: In the given question neither the face value of bond , nor the issue price of bond is given.…

Q: Help Seve & E On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1.000.000…

A: Par Value of the bonds = $1,000,000 Semi-annual Interest payment = 1,000,000 x 8% ÷ 2…

Q: On January 1, 2024, Neighborhood Credit Union (NCU) issued 6%, 20-year bonds payable with face value…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: Oriole Corp. issued $410,000 of 3-year, 4% bonds on May 1, 2024. The market interest rate when the…

A: Bonds are debt instruments where the issuer pays the investor a fixed interest periodically as well…

Q: Take me to the text On October 1, 2020, Robby Company issued $251,000 worth of bonds at par, with…

A: The bonds are the financial instruments used to raise money from the market.

Q: At December 31, 2018, Newman Engineering’s liabilities include the following:1. $10 million of 9%…

A: Current and Long-term Liabilities: Liabilities are referred to as the obligations of the business…

Q: Porter, Inc. issued $400,000, 10-year, 10% bonds for $354,200 on January 1, 2022; the bonds pay…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: Your Company issued a $150,000 face value bond on January 1, 2020. The 20 year term bond was issued…

A: Here,FaceValue of Bond is $150,000Issued Value is 102% of Face Value, therefore, Current Value will…

Q: On January 1, 2023, Marigold Corporation purchased a newly issued $1,250,000 bond. The bond matured…

A: Bonds refer to the financial instrument issued by the bank or financial institution at a specified…

Q: Requirement 1. If the market interest rate is 5% when ACU issues its bonds, will the bonds be priced…

A: The bonds are the debt instrument. These debt instruments are generally issued by the corporation or…

Q: On June 30, 2021, Singleton Computers issued 9% stated rate bonds with a face amount of $200…

A: Bonds refer to borrowing security issued by the company to raise funds from the market by making an…

Q: Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a…

A: A bond is a loan the investors give to the company or a business. The company repays the bond with…

Q: Blossom Inc. issued $884,000 of 10-year, 3% bonds on January 1, 2024. Interest is to be paid…

A: A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors…

Q: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 1/1/2018 $194,758…

A: Interest is the amount of money paid to the bondholders as return.

Q: On January 1, 2021, Flamengo Co. issued a four-year, $10,000, 7% bond. The interest is payable…

A: A bond is a financial debt security issued by large business organizations or governments. It is…

Q: Scottie Adams Bird Supplies issued 10% bonds, dated January 1, with a face amount of $190,000 on…

A: Data given: Face value=$190,000 Coupon rate = 10% (compounded semi-annually) = 10%/2 = 5% n= 10…

Q: On January 1, 2020, when the market rate for bonds interest was 12%, Black Corporation issued P10…

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds…

Q: On June 1, 2024, Carla Vista Bottle Company sold $2,880,000 in long-term bonds for $2,526,064. The…

A: If you have any clarifications (i.e., expand the explanation) or want different, expanded, or…

Q: Oriole SpA issued €400,000, 7%, 20-year bonds on January 1, 2020, for €360,727. This price resulted…

A: Effective Interest Method: It is an accounting method that helps in calculating the discount on…

Q: How much interest will Flamengo pay to the bondholders on December 31 2022?

A: It is pertinent to note that the current price or value of bond is the present value of all cash…

Q: Claremont Inc. issued a $400,000 bond on January 1, 2020. The bond had a five-year life and an 8%…

A: A bond is an instrument of an indebtedness to the holders of bond issuer in finance. The most…

Q: The Long-Term Debt section of Chesapeake's Balance Sheet at December 31, 2022 showed the following:…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: On January 1, 2020, Johny Industries issued ten-year bonds with a face value of $2,000,000 and a…

A: The bonds are the financial instruments for the business which are used to raise money from the…

Q: he Maple Company issued 5-year bonds on January 1, 2020. The debt has a face value of $400,000 and…

A: Price of bond is the sum of present value of future cash flows from the bond. Cash flows include…

Q: On January 1, 2021, Cullumber Ltd. issued bonds with a maturity value of $8,900,000 when the market…

A: The bonds refer to the debt instruments issued by corporations and government entities. When bonds…

Q: On October 1, 2023, Ross Wind Energy Inc. issued a $1,590,000, 11.5%, seven-year bond. Interest is…

A: It is a common approach used to amortize the discount or premium on a bond over its life. It is a…

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest…

A: Maturity period = December 31, 2020 to December 31, 2025 = 5 years Semi annual period = 5 years x 2…

Q: On January 1, 2021, Ivanhoe Ltd. issued bonds with a maturity value of $7,900,000 when the market…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: Kingbird Ltd. issued a $778,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12%…

A: Issue price of bonds would be the present value of the interest annuity & maturity amount at…

Q: On January 1, 2020, the company issued $2,500,000 6% bonds with a 10-year maturity. The bonds were…

A: Solution:- We know, Present Value of a bond = Present value of benefits receivable from bond…

Q: On July 1, 2023, LIN Inc. issued a five-year, 10% bond of $400,000 for the discount price of…

A: Maturity = 5 yearsCoupon rate = 10%Face value = $400,000Discount price = $343,811Market interest…

Q: Problem #3: Assume that on January 1, 2019, Sand World issues $200,000 of 9% bonds, due in 10 years…

A: A bond is an instrument that represents a loan taken by a borrower from an investor. Issuer of bonds…

Q: On January 1, 2020, $200,000, 4-year,9% bonds were issued. The interest rate in effect when the…

A: Bond is a financial instrument which is issued to raise fund by large organization. Bonds can be…

Q: Colwood Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest…

A: Amortization schedule is the one which is prepared to record the interest incurred during a period,…

Q: Nash Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: Bonds represent debts issued by the firm to meet the capital requirements. They act as a promise by…

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

A: Determine the price of the bond:   Present value of principle amount ($200,000, 4%, 10 years)…

Q: On January 1, 2021, a firm issues bonds with a face amount of $1,500,000. The stated rate is 10%,…

A: Issuing bonds is one way for companies to raise money. A bond functions as a loan between an…

Q: Kingbird Ltd. issued a $778,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12%…

A: An investment's real or actual interest rate, accounting for compounding over a certain time period,…

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.