Carrying Amount of Bonds Cash Interest Bond Premium Date Received Revenue Amortization 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 $7,000 7,000 7,000 7,000 7,000 $5,433 5,354 5,272 5,186 5,095 $1,567 1,646 1,728 1,814 1,905 $108,660 107,093 105,447 103,719 101,905 100,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 $107,093 106,500 Amortized cost $105,447 107,500 $103,719 $101,905 $100,000 100,000 Fair value 105,650 103,000

Carrying Amount of Bonds Cash Interest Bond Premium Date Received Revenue Amortization 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 $7,000 7,000 7,000 7,000 7,000 $5,433 5,354 5,272 5,186 5,095 $1,567 1,646 1,728 1,814 1,905 $108,660 107,093 105,447 103,719 101,905 100,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 $107,093 106,500 Amortized cost $105,447 107,500 $103,719 $101,905 $100,000 100,000 Fair value 105,650 103,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 7E

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