X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity:DateCash PaidInterest ExpenseDecrease in Carrying ValueCarrying Value01/01/2021 $104,212 12/31/2021$7,000 $6,253 $747 103,465 12/31/2022 7,000 6,208 792 102,673 12/31/2023 7,000 6,160 840 101,833 12/31/2024 7,000 6,110 890 100,943 12/31/2025 7,000 6,057 943 100,000 What is the annual market interest rate on the bonds?
A. 7%.
B. 3%.
C. 3.5%.
D. 6%.
Answer: D
You might also like to view...
The firm recognizes an expense when the following condition(s) hold(s)
a. The consumption of the asset results from a transaction that leads to the recognition of revenue. b. The consumption of the asset results from the passage of time. c. The expenditures on advertising must be recognized as expense in the period of expenditure. d. The expenditures on research must be recognized as expense in the period of expenditure. e. all of the above
An annuity is a series of equal payments at equal time intervals.
Answer the following statement true (T) or false (F)
The CRT partnership has decided to terminate operations and to liquidate the partnership assets. There are no partner loans, and all partners have positive capital balances. Gains and losses on liquidation and cash distributions to partners should be allocated as follows: Gains and LossesCash DistributionsA)In profit and loss ratioBased on capital balancesB)Based on capital balancesIn profit and loss ratioC)In profit and loss ratioIn profit and loss ratioD)Based on capital balancesBased on capital balances
A. Option A B. Option B C. Option C D. Option D
In February of the current year (assume a non-leap year), Ken and Kelsey received their property tax statement for last calendar-year taxes of $1,600, which they paid to the taxing authority on March 1 of the current year. They had purchased their home on May 1 last year. What amount of property tax on this statement may they claim as an itemized deduction this year?
A. $0 B. $1,600 C. $1,074 D. $800