Myriad Solutions, Inc., issued 10% bonds, dated January 1, with the face amount of $320 million upon January 1, 2013 for $283,294,720. The bonds mature upon December 31, 2022 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31.
Required:
- What would be the net amount of the liability Myriad would report in its balance sheet at December 31, 2013?
- What would be the amount related to the bonds that Myriad would report in its income statement for the year ended December 31, 2013?
- What would be the amount(s) related to the bonds that Myriad would report in its statement of cash flows for the year ended December 31, 2013?