Business, 10.03.2020 00:45 xTrippyBeach4201x

Compute Bond Proceeds, Amortizing Discount by Interest Method, and Interest Expense Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co. issued $90,000,000 of three-year, 12% bonds at a market (effective) interest rate of 14%, with interest payable semiannually. Compute the following: a. The amount of cash proceeds from the sale of the bonds. Use the tables of present values in Exhibit 8 and Exhibit 10. Round to the nearest dollar. $ b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round to the nearest dollar. $ c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round to the nearest dollar. $ d. The amount of the bond interest expense for the first year. Round to the nearest dollar. $

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Compute Bond Proceeds, Amortizing Discount by Interest Method, and Interest Expense Lewis Co. produc...

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