MC 6-1

Bonds Payable 8,000,000.00

Stated Rate 9%
Interest 720,000.00

BP 8,000,000.00 0.66634222 5,330,737.76

Interest 720,000.00 4.76653966 3,431,908.56
Proceeds 8,762,646.32

9% 7%
Date Int. Payment Int. Exp Amortization CA
1-1-23 8,762,646.32
12-30-23 720,000.00 613,385.24 106,614.76 8,656,031.56
12-30-24 720,000.00 605,922.21 114,077.79 8,541,953.77

MC 6-2

Bonds Payable(2,000*3,000) 6,000,000.00

Stated Rate 8%
Interest 480,000.00

BP 6,000,000.00 0.513158118 3,078,948.71

Interest 480,000.00 4.868418818 2,336,841.03
Proceeds 5,415,789.74

8% 10%
Date Int. Payment Int. Exp Amortization CA
1-1-23 5,415,789.74
12-30-23 480,000.00 541,578.97 61,578.97 5,477,368.72
12-30-24 480,000.00 547,736.87 67,736.87 5,545,105.59
12-30-25 480,000.00 554,510.56 74,510.56 5,619,616.15
12-30-26 480,000.00 561,961.61 81,961.61 5,701,577.76

MC 6-3

Bonds Payable 4,000,000.00

Stated Rate 12%
Interest 480,000.00

BP 4,000,000.00 0.513158118 2,052,632.47

Interest 480,000.00 4.868418818 2,336,841.03
Proceeds 4,389,473.51

12% 10%
Date Int. Payment Int. Exp Amortization CA
10-1-23 4,389,473.51
9-30-24 480,000.00 438,947.35 41,052.65 4,348,420.86
9-30-25 480,000.00 434,842.09 45,157.91 4,303,262.94
9-30-26 480,000.00 430,326.29 49,673.71 4,253,589.24
9-30-27 480,000.00 425,358.92 54,641.08 4,198,948.16

Coverage 2023 2024 2025 2026

438,947.35 109,736.84 329,210.51
434,842.09 108,710.52 326,131.56
430,326.29 107,581.57 322,744.72
425,358.92 106,339.73
109,736.84 437,921.03 433,713.14 429,084.45

9-30-26 CA 4,253,589.24
Oct-Dec 2026 Partial Amort 54,641.08*3/1 13,660.27
12-30-26 4,239,928.97

MC 6-4

Bonds Payable 9,000,000.00

Annual Install. 1,500,000.00
Stated Rate 6%

Interest
Year 1 9,000,000.00 540,000.00
Year 2 7,500,000.00 450,000.00
Year 3 6,000,000.00 360,000.00
Year 4 4,500,000.00 270,000.00
Year 5 3,000,000.00 180,000.00
Year 6 1,500,000.00 90,000.00
270,000.00

Cash Inflow
# of Periods Install + InterePV PV Amount
1 2,040,000.00 0.925925926 1,888,888.89
2 1,950,000.00 0.85733882 1,671,810.70
 3 1,860,000.00 0.793832241 1,476,527.97
4 1,770,000.00 0.735029853 1,301,002.84
5 1,680,000.00 0.680583197 1,143,379.77
6 1,590,000.00 0.630169627 1,001,969.71
8,483,579.87

Date Installment Int. Pay Int. Exp Amort CA

1-23 8,483,579.87
12-30-23 1,500,000.00 540,000.00 678,686.39 138,686.39 7,122,266.26
12-30-24 1,500,000.00 450,000.00 569,781.30 119,781.30 5,742,047.57
12-30-25 1,500,000.00 360,000.00 459,363.81 99,363.81 4,341,411.37
12-30-26 1,500,000.00 270,000.00 347,312.91 77,312.91 2,918,724.28

MC 6-5

Bonds Payable ###

Annual Install. 2,500,000.00
Stated Rate 10%

Interest Cash Flow PV PV Amount

Year 1 ### 1,000,000.00 3,500,000.00 0.917431193 3,211,009.17
Year 2 7,500,000.00 750,000.00 3,250,000.00 0.841679993 2,735,459.98
Year 3 5,000,000.00 500,000.00 3,000,000.00 0.77218348 2,316,550.44
Year 4 2,500,000.00 250,000.00 2,750,000.00 0.708425211 1,948,169.33
2,500,000.00 ###

Date Installment Int. Pay Int. Exp Amort CA

7-1 ###
6-30-24 2,500,000.00 1,000,000.00 919,007.00 -80,993.00 7,630,195.92
6-30-25 2,500,000.00 750,000.00 686,717.63 -63,282.37 5,066,913.56
6-30-26 2,500,000.00 500,000.00 456,022.22 -43,977.78 2,522,935.78
6-30-27 2,500,000.00 250,000.00 227,064.22 -22,935.78 0.00

Coverage 2023 2024 2025 2026

919,007.00 459,503.50 459,503.50
686,717.63 343,358.82 343,358.82
456,022.22 228,011.11 228,011.11
227,064.22 113,532.11
459,503.50 802,862.32 571,369.93 341,543.22

6-30-25 CA 5,066,913.56
Jul-Dec 2025 Partial Amort 43,977.68*6/1 21,988.89
12-30-25 5,044,924.67

MC 6-6

Bonds Payable 5,000,000.00

Quoted Price 97.72
Proceeds 4,886,000.00
Bonds Issue Costs 38,000.00
Net Proceeds 4,848,000.00

Bonds Payable 5,000,000.00

Net Proceeds 4,848,000.00
Discount 152,000.00
Accrued Interest Payable 375,000.00
Total Discount 527,000.00

Date Int. Payment Int. Exp Amortization CA

10-1-23 4,473,000.00
12-31-23 125,000.00 156,000.00 31,000.00 4,504,000.00
12-31-24 500,000.00 624,000.00 124,000.00 4,628,000.00

MC 6-7

Bonds Payable 4,000,000.00

Quoted Price 93.60
Proceeds 3,744,000.00
Accrued Interest 80,000.00
Bonds Issue Costs 108,000.00
Net Proceeds 3,716,000.00

Bonds Payable 4,000,000.00

Net Proceeds 3,716,000.00
Discount 284,000.00
Accrued Interest Payable 80,000.00
Total Discount 364,000.00

Date Int. Payment Int. Exp Amortization CA

9-1-23 3,636,000.00
12-31-23 160,000.00 182,750.00 22,750.00 3,658,750.00
12-31-24 480,000.00 548,250.00 68,250.00 3,727,000.00
 MC 6-8

Bonds Payable 6,000,000.00

Origination Fees 239,564.00
5,760,436.00

Date Int. Pay Int. Exp Amortization CA

4-1-23 5,760,436.00
3-31-24 420,000.00 460,834.88 40,834.88 5,801,270.88
3-31-25 420,000.00 464,101.67 44,101.67 5,845,372.55
3-31-26 420,000.00 467,629.80 47,629.80 5,893,002.35

Coverage 2023 2024 2025

460,834.88 345,626.16 115,208.72
464,101.67 348,076.25 116,025.42
467,629.80 350,722.35
463,284.97

3-31-25 CA 5,845,372.55
Apr-Dec 2025 Partial Amort 35,722.35 (47,629.80*9/12)
12-31-25 CA 5,881,094.90
 MC 7-1

Bonds Payable 4,000,000.00

Issue Price 3,900,000.00

BP 4,000,000.00 0.481658411 1,926,633.64

Interest 360,000.00 4.712196265 1,696,390.66
FV 3,623,024.30

Issue Price 3,900,000.00

BP-FV 3,623,024.30
Share Premium-Warrants 276,975.70

exercised 3,000 note

Shares acquire 300,000 1 bond = 100 shares
1 share = 40 par value
Cash ### shares × exer price 1 share = 50 exercise price
SP - Warrants 207,731.78
###
Less: OS ### shares × par
Share Premiu 3,207,731.78

exercised 2,500 exercised 4,000

Shares acquire 250,000 Shares acquire 400,000

Cash ### Cash ###

SP - Warrants 173,109.81 SP - Warrants 276,975.70
### ###
Less: OS ### Less: OS ###
Share Premiu 2,673,109.81 Share Premiu 4,276,975.70

MC 7-2

Bonds Payabl 9,000,000 0.649931386 5,849,382.48

Interest 900,000 3.889651264 3,500,686.14
FV 9,350,068.61

Issue Price 9,730,000 BP-FV 9,350,068.61

BP-FV 9,350,068.61 BP-FA 9,000,000
SP-Warrants 379,931 Premiums 350,068.61
 Date Int. Pay Int. Exp Amort CA
1-1-23 9,350,068.61
12-31-2023 900,000.00 841,506.18 58,493.82 9,291,574.79
12-31-2024 900,000.00 836,241.73 63,758.27 9,227,816.52
12-31-2025 900,000.00 830,503.49 69,496.51 9,158,320.01

1-1-23 Premiums 350,068.61

12-31-23 Amort 58,493.82
12-31-23 Premiums 291,574.79

Converted 1,000 bonds Converted 3,000 bonds

BP 3,097,191.60 BP 9,227,816.52
SP-Warrants 126,643.67 SP-Warrants 379,931.00
3,223,835.26 9,607,747.52
Less: OS 2,400,000.00 Less: OS 7,200,000.00
Share Premiu 823,835.26 Share Premiu 2,407,747.52

MC 7-3

Bonds Payabl 5,000,000.00 0.513158118 2,565,790.59

Interest 600,000.00 4.868418818 2,921,051.29
FV 5,486,841.88

Issue Price 5,900,000

BP-FV 5,486,841.28 251,234.09
SP-Warrants 413,158.72 18,917.91
ERROR
Date Int. Pay Int. Exp Amort CA DO NOT REFER TO THIS
1-1-23 5,235,607.79
12-31-2023 600,000.00 471,204.70 128,795.30 5,106,812.49
12-31-2024 600,000.00 459,613.12 140,386.88 4,966,425.61
12-31-2025 600,000.00 446,978.31 153,021.69 4,813,403.92

BP 4,813,403.92
SP-Warrants 394,240.81
5,207,644.73
Less: OS 4,000,000.00
Share Premiu 1,207,645

MC 7-4
Bonds Payabl 7,000,000.00
Interest 420,000.00

Issue Price 7,390,000.00

FV 7,180,000.00
SP 210,000.00

Date Amortization CA Premium

7-1-2023 7,180,000.00 180,000
12-31-2023 20,000.00 7,160,000.00 160,000
12-31-2024 40,000.00 7,120,000.00 120,000
12-31-2025 40,000.00 7,080,000.00 80,000

Total retirement price 7,350,000.00

Liab FV 7,220,000.00
Share Premium 130,000.00

BP-CA 7,120,000.00
BP-RP 7,220,000.00
G/L -100,000.00

SP 7-1-23 210,000.00
SP 12-31-24 -130,000.00
SP Bal 80,000.00

MC 7-5

Bonds Payabl 4,000,000.00 0.596267327 2,385,069.31

Interest 280,000.00 4.48591859 1,256,057.21
PV 3,641,126.51

Issue Price 4,100,000.00

BP-FV 3,641,126.51
SP 458,873.49

Date Int Pay Int Exp Amort CA

1-1-23 3,641,126.51
12-31-23 280,000.00 327,701.39 47,701.39 3,688,827.90
12-31-24 280,000.00 331,994.51 51,994.51 3,740,822.41
12-31-25 280,000.00 336,674.02 56,674.02 3,797,496.43
 12-31-26 280,000.00 341,774.68 61,774.68 3,859,271.11

Bonds Payabl 4,000,000.00 0.826446281 3,305,785.12

Interest 280,000.00 1.73553719 485,950.41
PV 3,791,735.54

Retirement P 3,920,000.00
BP-Allocation 3,791,735.54
SP 128,264.46

BP-CA 3,859,271.11
BP-RP 3,791,735.54
G/L 67,535.57

SP 7-1-23 458,873.49
SP 12-31-24 -128,264.46
SP Bal 330,609.02
O NOT REFER TO THIS
 MC 8-1

Bonds Payabl 5,000,000.00 0.6499314 3,249,657.00

Interest 400,000.00 3.8896513 1,555,860.52
FV 4,805,518

Date Int Pay Int Exp Amortization CA

1-1-23 4,805,518 194,482.48
12-31-23 400,000.00 432,497 32,497 4,838,014 161,985.90
12-31-24 400,000.00 435,421 35,421 4,873,435 126,564.63

portion of CA 1,949,374
Cash paid 2,100,000
Loss -150,626

12-31-24 2,924,061
12-31-25 240,000.00 263,165.51 23,165.51 2,947,226.73

portion of CA 1,473,613
Cash paid 1,400,000
Gain 73,613

12-31-25 1,473,613.37
12-31-26 120,000.00 132,625.20 12,625.20 1,486,238.57

MC 8-2

Bonds Payabl 6,000,000.00 0.513158118 3,078,948.71

Interest 540,000.00 4.868418818 2,628,946.16
FV 5,707,894.87

Date Int Pay Int Exp Amort CA

1-1-22 5,707,894.87
12-31-22 540,000.00 570,789.49 30,789.49 5,738,684.36
12-31-23 540,000.00 573,868.44 33,868.44 5,772,552.79 Let's allocate this CA

# of shares Allocation of CA
Retired 2000 1,924,184.27
Remaining 4000 3,848,368.53
Total 6,000 5,772,552.79
 Date Int Pay Int Exp Amort CA
1-1-24 1,924,184.27
7-1-24 90,000.00 96,209.21 6,209.21 1,930,393.48

portion of CA 1,930,393.48 *note

RP less AI 2,100,000.00 AI 0.00
Loss -169,607 Bonds 2000/6000
portion of AI 0.00

1-1-24 3,848,368.53
12-31-24 360,000.00 384,836.85 24,836.85 3,873,205.38

Interest
int for 2000 96,209.21
int for 4000 384,836.85
481,046

# of shares Allocation of CA
Retired 1000 968,301.35
Remaining 3000 2,904,904.04
Total 4,000 3,873,205.38

Date Int Pay Int Exp Amort CA

1-1-25 968,301.35
4-1-25 22,500.00 24,207.53 1,707.53 970,008.88

portion of CA 970,008.88 *note

RP less AI 950,000.00 AI 90000
Gain 20,009 Bonds 1000/4000
portion of AI 22,500.00

MC 8-3

Bonds Payabl 5,000,000.00 0.393646284 1,968,231.42

Interest 350,000.00 10.10589527 3,537,063.35
FV 5,505,295

Date Int Pay Int Exp Amort CA

1-1-22 5,505,295
6-31-22 350,000 330,318 19,682 5,485,612
12-31-22 350,000 329,137 20,863 5,464,749
6-31-23 350,000 327,885 22,115 5,442,634
12-31-23 350,000 326,558 23,442 5,419,192
6-31-24 350,000 325,152 24,848 5,394,344
12-31-24 350,000 323,661 26,339 5,368,004
6-31-25 350,000 322,080 27,920 5,340,085
12-31-25 350,000 320,405 29,595 5,310,490

Assumption 1
CA 5,368,004 OS-FV 5,100,000.00
EI 5,100,000.00 OS-Par 3,000,000.00
Gain 268,004 Share Premiu 2,100,000.00

Assumption 2
CA 5,310,490 OS-FV 5,450,000.00
BP-FV 5,450,000.00 OS-Par 3,000,000.00
Loss -139,510 Share Premiu 2,450,000.00

MC 8-4

Loans Payable 6,000,000.00 0.506631121 3,039,786.73

Interest 660,000.00 4.111407324 2,713,528.83 Discount 246,684.44
PV-RCF (EIR) 5,753,316
Add: MC 118,161
PV 5,871,477 Journal Entries

Difference 2.14% not substantial Discount

CA 6,000,000.00 Loan Payable 6,000,000.00 #

PV 5,753,315.56 Discount 364,845.44 Discount
Gain 246,684.44 Initial 5,635,154.56
#
12-31-23 CA 5,635,154.56 Interest Exp
Revised EIR 12.50%
Interest Expen 704,394.32

MC 8-5

Loans Payable 6,000,000.00 0.735029853 4,410,179.12 Waived AI 800,000

Interest 360,000.00 3.31212684 1,192,365.66
PV-RCF (EIR) 5,602,545
Add: MC 200,000
 PV 5,802,545

Difference 46.27% substantial

Assumption 1 Traditional Approach

CA of LP and 10,800,000
PV-RCF 5,602,545
Initial Gain 5,197,455 12-31-23 CA 5,602,545
MC 200,000 Original EIR 8.00%
Net Gain 4,997,455 Interest Expen 448,203.58

Assumption 2 ContemporaryApproach

Loans Payable 6,000,000.00 0.762895212 4,577,371.27

Interest 360,000.00 3.387211257 1,219,396.05
FV 5,796,767

CA of LP and 10,800,000
FV 5,796,767
Initial Gain 5,003,233 12-31-23 CA 5,796,767
MC 200,000 Original EIR 7.00%
Net Gain 4,803,233 Interest Expen 405,773.71

MC 8-6

CA 2,000,000.00 CA 3,000,000.00
Equip-CA 2,400,000.00 OS-FV 3,500,000.00
Loss -400,000.00 Loss -500,000.00

Loans Payable 4,000,000.00 0.593451328 2,373,805.31

Interest 320,000.00 3.695897018 1,182,687.05
FV 3,556,492

CA of LP and 5000000 Loss -400,000.00

FV 3,556,492 Loss -500,000.00
Initial Gain 1,443,508 Gain 1,443,508
MC 180000 Net Gain 543,507.64
Net Gain 1,263,508
 Straight Prob 8-1

Bonds Payabl 4,000,000.00 0.56447393 2,257,895.72

Interest 480,000.00 4.3552607 2,090,525.14
FV 4,348,420.86

Date Int Pay Int Exp Amort CA

1-1-22 4,348,420.86
12-31-22 480,000.00 434,842.09 45,157.91 4,303,262.94
12-31-23 480,000.00 430,326.29 49,673.71 4,253,589.24
12-31-24 480,000.00 425,358.92 54,641.08 4,198,948.16

Straight Prob 8-3

Bonds Payabl 6,000,000.00 0.399637323 2,397,823.94

Interest 720,000.00 4.288304839 3,087,579.48
FV 5,485,403.42
Date Int Pay Int Exp Amort CA
1-1-23 5,485,403.42
12-31-23 720,000.00 767,956.48 47,956.48 5,533,359.90
12-31-24 720,000.00 774,670.39 54,670.39 5,588,030.28
12-31-25 720,000.00 782,324.24 62,324.24 5,650,354.52
12-31-26 720,000.00 791,049.63 71,049.63 5,721,404.16
12-31-27 720,000.00 800,996.58 80,996.58 5,802,400.74

Scene 1
12-31-23 CA 5,588,030.28 5,533,359.90
Amort 15,581.06 13,667.60
3-31-24 5,603,611.34 5,547,027.49 Bonds

CA 3-31-24 5,603,611.34
Cash 5,480,000.00
Gain 123,611.34

Scene 2
12-31-23 CA 5,588,030.28
Amort 46,743.18
3-31-24 5,634,773.46 Bonds

CA 3-31-24 5,634,773.46
Cash 5,400,000.00
Gain 234,773.46

Straight Prob 8-5

Bonds Payabl 8,000,000.00 0.50186628 4,014,930.24

Interest 640,000.00 5.534819115 3,542,284.23
FV 7,557,214.47

Date Int Pay Int Exp Amort CA

1-1-23 7,557,214.47
12-31-23 640,000.00 680,149.30 40,149.30 7,597,363.77
12-31-24 640,000.00 683,762.74 43,762.74 7,641,126.51
12-31-25 640,000.00 687,701.39 47,701.39 7,688,827.90
12-31-26 640,000.00 691,994.51 51,994.51 7,740,822.41

Scene 1 Scene 2
CA 12-31-24 7,641,126.51 CA 12-31-25 7,688,827.90
OS-FV 7,150,000.00 BP-FV 7,880,000.00
Gain 491,127 Loss -191,172.10

Straight Prob 8-7

urnal Entries

246,684.44
Gain 246,684.44
#
118,161
Cash 118,161
#
704,394.32
Cash 660,000.00
Discount 44,394.32
Discount
514,596.58
466,640.10
411,969.72
349,645.48
278,595.84
197,599.26

6,000,000.00
Cash 5,480,000.00
Discount 396,388.66
Gain 123,611.34

6,000,000.00
Cash 5,400,000.00
Discount 365,226.54
Gain 234,773.46
Scene 3
CA 6-31-26 7,714,825.15
Interest 320,000.00
OS 8,160,000.00
Loss -125,175