What will the bond sell for when issued

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Q1. Massive Corp buys Tiny Corp for $1,000,000. In return, they get $600,000 worth of land that has been 60% depreciated, buildings, equipment, and other tangible assets; $200,000 worth of intangible assets the firm purchased that are 25% amortized; and $75,000 worth of intangible assets that the firm developed internally, and, therefore, never showed on their books. There are no other specifically identifiable assets. How much goodwill will MassiveCorp show on their books from the sale?

Q2. A firm issues a zero-coupon bond with a face value of $1,000,000 and a term of 10 years. If the market interest rate is 6%, what will the bond sell for when issued?

Reference no: EM132543555

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