How much cash must the company pay to call the bonds

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Reference no: EM132600970

On 01 July 2017, "ABC" company issued $160,000 , 10%, 9.00 years bonds for $180,254.88 since the market rate was equal to 8%. The issued bond pays interest semi-annually on 1/1 and 1/7. On 1/1/2020, the company called 40% of its outstanding bonds for 110.

Based on the above given information, answer the following questions:

Question 1. What is the amount of cash the company must pay on 31/12/2018?

Question 2. What is the amount of interest expense the company must present on its 2018 income statement?

Question 3. What is the bond's carrying value as on 31/12/2019?

Question 4. How much cash must the company pay to call the bonds on 1/1/2020?

Question 5. What is the amount of interest expense the company must present on its 2020 income statement?

Reference no: EM132600970

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