1. Adelphi company purchased a bond investment on January 1, 2021. The bonds have a...
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1. Adelphi company purchased a bond investment on January 1, 2021. The bonds have a par of $50,000, pay interest at a 3% annual rate and have 10 years until maturity. What is the total Interest Income that will be reported over the life of the bond investment if the bonds were purchased at 103 and Adelphi uses the straight line amortization method? Enter as a whole number (no cents).
2. On January 1, 2021, Fargo Corporation purchased a significant influence shares investment in Concord Corporation for $300,000. This investment balance represents 25% of the equity of the Concord Corporation. During 2021, Concord Corporation reported Net Income of $80,000 on November 15, 2021 Concord Corporation paid cash dividends of $35,000 to its shareholders. Using this information, what is the 2021 year end balance in Fargo Corporations Investment in Concord Corporation account? Enter as whole dollars (no cents).
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