ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 3

9) On January 1, 2014, Ellison Co. issued eight-year bonds
with a face value of $4,000,000 and a stated interest rate of 6%,
payable semiannually on June 30 and December 31. The bonds
were sold to yield 8%. Table values are:

Present value of 1 for 8 periods at 6%

.627

Present value of 1 for 8 periods at 8%

.540

Present value of 1 for 16 periods at 3%

.623

Present value of 1 for 16 periods at 4%

.534

Present value of annuity for 8 periods at 6%
6.210

Present value of annuity for 8 periods at 8%
5.747

Present value of annuity for 16 periods at 3%
12.561

Present value of annuity for 16 periods at 4%
11.652