On January 1, 2015, Vacation Destinations issues $27 million of bonds that pay i

Question

On January 1, 2015, Vacation Destinations issues $27 million of bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:

column 1 is darte column 2 is cash paid for interest, column 3 is interest expense, column 4 is increase in carrying value, and column 5 is the carrying value. what will be the original purchase price of the bond? The bond is issued at a discount.
Value
1/1/2015                                                                 $25,165,306
6/30/2015     $945,000 $1,006,612     $61,612       25,226,918
12/31/2015     945,000 1,009,077     64,077       25,290,995

Explanation / Answer

from amortisation schedule carrying value as on 1/1/2015 = $ 25165306

so the carrying value ason 1/1/2015 is the original purchase price of the bond i.e $ 25165306

Discount on issue = 27000000 - 25165306

                            = 1834694

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