On January 1, 2020, Swifty Corporation issued eight-year bonds with a face value of $5910000 and a stated interest rate of 4%, payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. Table values are:   Present value of 1 for 8 periods at 4%            0.731   Present value of 1 for 8 periods at 6%            0.627   Present value of 1 for 16 periods at 2%          0.728   Present value of 1 for 16 periods at 3%          0.623   Present value of annuity for 8 periods at 4%              6.733   Present value of annuity for 8 periods at 6%              6.210   Present value of annuity for 16 periods at 2%            13.578   Present value of annuity for 16 periods at 3%            12.561 The present value of the principal is $3705570. $3681930. $4302480. $4320210.

Q: Standard Autoparts Inc. issued $170,000 of 8%, 10-year bonds at a price of 84 on January 31, 2020.…

A: The bonds are the financial instruments for the business. The bonds are issued to raise the money…

Q: January 1, 2024, Winter Fog Inc. (WFI) issued eight-year, 3% bonds with a face value of $600,000.…

A: A bond refers to an instrument used by the issuing organization to raise debt capital from…

Q: Standard Autoparts Inc. issued $170,000 of 8%, 10-year bonds at a price of 84 on January 31, 2020.…

A: Journal entry is the primary step to record the transaction in the books of account. The maturity…

Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…

A: Given: Face value= $5,000,000 i (Stated interest rate) = 14% n (Time period)= 10 x 2 = 20 Market…

Q: Compute the issue price of the bonds of Pluto corp issues P560,000 of 9% bonds, due in 9 years, with…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: On January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

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A: The bonds are the long-term liabilities that are issued to raise the money from the market orThe…

Q: On January 1, 2022, Broncos Universal issued 12% bonds dated January 1, 2022, with a face amount of…

A: Bond Price :— It is sum of present value of periodic interest payment and face value amount.    If…

Q: ed ten-year bonds with a face value of $5,000,000 and a stated interest rate of 6%, payable…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: On January 1, 2024, Cullumber Co. issued eight-year bonds with a face value of $6040000 and a stated…

A: Bonds help companies, government entities, and others acquire the funds required to meet their…

Q: (a) Pharoah Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2020. The bonds were…

A: An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a…

Q: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

A: a.Bond Amortization table for first 4 year   Period Ending Beginning of Period Net Book Value…

Q: On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

A: Calculate the present value of the principal amount as shown below:

Q: Determine the present value of the bonds at issuance.

A: Bond valuation is the process of finding the fair value of the bond. It means to find the present…

Q: Vaughn Manufacturing issues $5130000, 6%, 5-year bonds dated January 1, 2020 on January 1, 2020. The…

A: The question is based on the concept of Financial Management.

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A: The bonds are the long-term liabilities that are issued to raise the money from the market orThe…

Q: Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The…

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

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A: The bonds are the financial instruments that are used to raise money from the market or investors.…

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A: Proceeds from bond is the Present Value of the Bond. Present value of Bond is the present value of…

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A: Premium unamortized means the premium amount which is yet to be amortized on the bonds. It is…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

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A: Bonds: Bond is a debt security.The amount of interest is paid on bond.  Bond amortization:…

Q: Wildhorse Ltd. issued $0.94 million of 5-year, 4% bonds dated May 1, 2024, for $983,344 when the…

A: Bonds are long term source of finance for companies and bonds are paid annual coupon and par value…

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A: A bond is a fixed income security which offers the investor a fixed set of periodic coupon payments…

Q: Crane Company issues $26400000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

Q: On January 1, 2021, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a…

A: Particulars Values Face value of the bond (100*$1,000)  $ 1,00,000.00 Current price of the bond…

Q: On January 1, 2020, Bonita Industries issued eight-year bonds with a face value of $5950000 and a…

A: Present value of principal = Face value of the bonds x Present value factor at market rate

Q: On January 1, 2025, Cullumber Co. issued five-year bonds with a face value of $510,000 and a stated…

A: Face value$510,000Coupon rate10%YTM6%Years to maturity5Compounding frequency2Present value of 1 for…

Q: On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced…

A: Interest expense is the amount of charge which is paid by the person who uses the funds. In this…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bond is a borrowing security issued by the company to raise funds from the market by making an…

Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…

A: Bonds payable are a liability of the issuing company. It is normally recorded as a long-term…

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.