In: Accounting
On February 1, 2018, Cromley Motor Products issued 7% bonds,
dated February 1, with a face amount of $60 million. The bonds
mature on January 31, 2022 (4 years). The market yield for bonds of
similar risk and maturity was 8%. Interest is paid semiannually on
July 31 and January 31. Barnwell Industries acquired $60,000 of the
bonds as a long-term investment. The fiscal years of both firms end
December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)