QUESTION
Part 1:What is the market value of each of the following bond issues? Bond A Bond B Bond CCoupon 10% 12% 8%Face value $500,000 $ 1,000,000 $ 650,000Life (years) 10 15 20Interest payable (times per year): 2 4 12Effective rate: 10% 8% 10%Market Value = Show Calculations Below :Part 2:2. On May 1, Lenny Corporation purchased for $700,000 a tract of land on which a warehouse and office building were located. The following data were collected concering the property: Current Assessed Valuation Vendor’s Original CostLand $250,000 $ 185,000Warehouse 330,000 312,000Office Building 225,000 144,000 $805,000 $ 641,000Determine the appropriate amounts that Lenny should record for the land, warehouse, and office building. A journal entry is not needed.
ANSWER:
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