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Problem 2 Refer back to Problem #1. In addition to the installment loan, SCW issued $200,000...

Problem 2
Refer back to Problem #1. In addition to the installment loan, SCW issued $200,000 of 5-year, 7% bonds for $190,000 on January 1, 2023. Interest is paid semiannually on June 30 and December 31. SCW uses the straight-line method for amortizing bond discounts and premiums. SCW also had the following financial information during the life of the loan: earned cash revenue of $75,000 each year, paid cash operating expenses of $30,000 each year, purchased land in 2023 for $30,000, and purchased computer equipment in 2025 for $6,500 (estimated useful life of 5 years and salvage value of $600).
1. What is SCW’s net income for 2025?
2. What is SCW’s total assets for 2025?
3. What is the carrying value of SCW’s bonds in 2025?
4. What is SCW’s total liabilities for 2025?

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ekkarill92 answered 2 years ago
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