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Pinnacle Corp. issued 4% bonds on October 1, 2022. The bonds have a maturity date of September 30, 2032 and a face value of $400 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2023. The effective interest rate established by the market was 6%. Assume that Pinnacle Corp. issued the bonds for $340,491,760. Calculate the amount Pinnacle Corp. would report for its net bond liability balance on December 31, 2022.

Pinnacle Corp. issued 4% bonds on October 1, 2022. The bonds have a maturity date of September 30, 2032 and a face value of $400 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2023. The effective interest rate established by the market was 6%. Assume that Pinnacle Corp. issued the bonds for $340,491,760. Calculate the amount Pinnacle Corp. would report for its net bond liability balance on December 31, 2022.

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...
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Pinnacle Corp. issued 4% bonds on October 1, 2022. The bonds have a maturity date of September 30, 2032 and a face value of $400 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2023. The effective interest rate established by the market was 6%. Assume that Pinnacle Corp. issued the bonds for $340,491,760. Calculate the amount Pinnacle Corp. would report for its net bond liability balance on December 31, 2022. $341,599,000 O $336,492,000 O $399,000,000 O $344,492,000
Transcribed Image Text:Pinnacle Corp. issued 4% bonds on October 1, 2022. The bonds have a maturity date of September 30, 2032 and a face value of $400 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2023. The effective interest rate established by the market was 6%. Assume that Pinnacle Corp. issued the bonds for $340,491,760. Calculate the amount Pinnacle Corp. would report for its net bond liability balance on December 31, 2022. $341,599,000 O $336,492,000 O $399,000,000 O $344,492,000
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