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    Cardinals Company Financial Calculations

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    Cardinals Co issued $900,000 of 8%, 4-year bonds on 6/1/05 at {96} plus accrued interest. The bonds mature on 3/1/09, and pay interest each 3/1 and 9/1. The straight line method is used to amortize any discount or premium.

    Compute the
    1) amt of interest expense reported FYE 12/31/05
    2) balance of the discount account at 12/31/05
    3) carry value of the bond at 12/31/06

    (CLUE: Carry Value on 12/31/07 must match $888,800.)

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    https://brainmass.com/business/accounting/cardinals-company-financial-calculations-52861

    Solution Summary

    The Cardinals Company financial calculations are determined. The AMT of interest expense reports are provided.

    $2.19

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