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What would Ajax Company report on its balance sheet

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Q1. On January 1, 2023, Ajax Ltd. issued $10 million in bonds. The bonds have a 10-year term, 6% annual market interest rate, and pay interest semiannually. The seventeenth semiannual payment of $400,000 consisted of $311,15, interest and $88,849 premium amortization, after which the carrying amount was reduced to $10,282,861. What is the carrying value of the bonds after the eighteenth semiannual payment of $400,000?

Q2. On January 1, 2025, Ajax Company purchased 25,000 shares of Comet, Inc. for $10 per share (this is the only investment held by Ajax). Comet has 100,000 shares outstanding. During 2025, Comet reported earnings of $1.00 per share and paid dividends of $0.25 per share. On December 31, 2025, shares of Comet were selling for $13 per share. What would Ajax Company report on its balance sheet as the amount of its investment assuming they classify the investment as an Equity Method security?

Reference no: EM132635266

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