Present value of 1 for 10 periods at 10 % |
. 386 |
Present value of 1 for 10 periods at 12 % |
. 322 |
Present value of 1 for 20 periods at 5 % |
. 377 |
Present value of 1 for 20 periods at 6 % |
. 312 |
Present value of annuity for 10 periods at 10 % |
6.145 |
Present value of annuity for 10 periods at 12 % |
5.650 |
Present value of annuity for 20 periods at 5 % |
12.462 |
Present value of annuity for 20 periods at 6 % |
11.470 |
3 ) Calculate the issue price of the bonds . Issue price of bond
4 ) Without prejudice to your solution in part ( a ), assume that the issue price was $ 2,652,000 . Prepare the amortization table for 2015 , assuming that amortization is recorded on interest payment dates using the effective-interest method .
5 ) Sisco Co . purchased a patent from Thornton Co . for $ 620,000 on July 1 , 2012 . Expenditures of $ 119,000 for successful litigation in defense of the patent were paid on July 1 , 2015 . Sisco estimates that the useful life of the patent will be 20 years from the date of acquisition .
Prepare a computation of the carrying value of the patent at December 31 , 2015 .