On July 1, 2021, Glamorous Corporation issued 11% bonds in the face amount of P2,000,000 that mature on June 30, 2025. The bonds were issued to yield 5% and interest is payable every January 1 and July 1. Glamorous Corporation uses the effective interest method of amortizing bond premium or discount. The following are the present value factors. PV of 5% for an ordinary annuity of P1 after 8 periods 6.463 PV of 5% after 8 interest period                                       .677 What is the carrying value of the debt instruments as of December 31, 2021?

Q: On January 1, 2025, Blossom Co. issued ten-year bonds with a face value of $6,750,000 and a stated…

A: Par value of the bonds = $6,750,000Stated interest rate = 10%Years to maturity = 10 yearsYeild =…

Q: On January 1, 2024, Mechanics Credit Union (MCU) issued 8%, 20-year bonds payable with face value of…

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

Q: On January 1, 2024, Burton Sales issued $23,000 in bonds for $35,800. These are ten-year bonds with…

A: BOND Bond is a Financial Security which is Generally Issued by the Corporations, Government &…

Q: Loop Raceway issued 700 bonds, each with a face value of $1,000, a stated interest rate of 6 percent…

A: Bonds that have an amortized face value are ones that pay interest in addition to regular payments…

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,…

Q: Ivanhoe Company issues $24300000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

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

Q: On January 1, 2018, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $150,000.…

A: 1. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2018 prepare a…

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: Bonds with a stated interest rate of 9% and a face value totaling $632,000 were issued for $657,280…

A: Bond amortization refers to the value which is paid at every period including the amount of…

Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

Q: On June 30, 2024, Single Computers issued 8% stated rate bonds with a face amount of $100 million.…

A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

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 January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

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: 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.

Q: Crane Company issues $25300000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

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

Q: Crane Company issues $5040000, 7%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds…

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

Q: On January 1, 2025, Crane Co. issued ten-year bonds with a face value of $5,500,000 and a stated…

A: Lets understand the basics.Bond can be issued at,(1) Par value(2) At premium(3) At discount If bond…

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

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

Q: On January 1, 2021, BBB Company issued 10% bonds payable dated January 1, 2021 with a face amount of…

A: Present Value of Bond = PV of Coupon Payments + PV of Redemption Value PV of Coupon Payments =…

Q: On January

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

Q: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…

A: Given information Face value of bond = P 8,000,000 Life of bond = 6 years Number of periods = 6 x…

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, 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: Bonds with a stated interest rate of 9% and a face value totaling $610,000 were issued for $634.400…

A: Carrying value of bond at end of year 1 = issue price + effective interest expense  - stated…

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: On June 30, 2021, the market interest rate is 5%. Champs Corporation issues $600,000 of 10%, 30-year…

A: Par value = $600,000Coupon rate = 10%Period = 30 yearsMarket rate of interest = 5%

Q: On June 30, 2021, Allen Corporation issued $4 million of its 8% bonds for $3.5 million. The bonds…

A: The bonds are issued at a discount when the interest offered by the market is greater than the…

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…

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.