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.