value: 1.50 points Required For each of the following situations, calculate the

Question

value: 1.50 points Required For each of the following situations, calculate the amount of bond discount or premium, if any. (Do not round your intermediate calculations.) a. Gray Co. issued $80,000 of 6 percent bonds at 101 1/4 b. Bush, Inc., issued $200,000 of 10-year, 6 percent bonds at 97 1/2 c. Oak, Inc., ssued $100,000 of 20-year, 6 percent bonds at 103. Willow Co. issued $180,000 of 15-year, 7 percent bonds at 99. d. References eBook & Resources Worksheet Learning Objective: 10-04 Use the straight line method to amortize bond discounts. Difficulty: 2 Medium Learning Objective: 10-05 Use the straight line method to amortize bond premiums Check my work

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Reason a) Premium Since issue price of 101.25 is more than face value b) Discount Since issue price of 97.50 is less than face value c) Premium Since issue price of 103 is more than face value d) Discount Since issue price of 99 is less than face value

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