On January 1, 2014, GRL Inc -Compute the Carrying Value of the Investment at the End

question 18

Essay

On January 1, 2014, GRL Inc. purchased, in U.S. Funds $500,000 of Bonds of the OBY Company. On that date, the Bonds were trading at par. These Bonds pay 10% interest annually each December 31. The Bonds mature on December 31, 2016. The following exchange rates were applicable between 2014 and 2016. The rates indicate the cost (in Canadian dollars) of purchasing 1 U.S. dollar:
$$\begin{array} { | l | l | } \hline \text { January } 1,2014 & \text { CDN } \$ 1.4666 \\\hline \text { Average rate for } 2014 & \text { CDN } \$ 1.4570 \\\hline \text { December } 31,2014 & \text { CDN } \$ 1.4726 \\\hline \text { Auerage rate for } 2015 & \text { CDN } \$ 1.4600 \\\hline \text { December } 31,2015 & \text { CDN } \$ 1.4426 \\\hline \text { Average rate for } 2016 & \text { CDN } \$ 1.4500 \\\hline \text { December } 31,2016 & \text { CDN } \$ 1.4575 \\\hline\end{array}$$
-Compute the carrying value of the investment at the end of each year:

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specific period.

Maximum Wage Law

Legislation that sets an upper limit on the amount of money that can be earned by employees in a specific period.

Price Ceiling

A legally established maximum price that can be charged for a good or service.

Minimum Wage Law

Legislation that sets the lowest hourly rate that can be paid to workers, aimed at ensuring a minimum standard of living for employees.