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How much total bond interest expense will be recognized

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Question - Straight-Line: Amortization of bond discount

Tano Company issues bonds with a par value of $83,000 on January 1, 2019. The bonds' annual contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $78,922.

Required -

1. What is the amount of the discount on these bonds at issuance?

2. How much total bond interest expense will be recognized over the life of these bonds?

3. Prepare a straight-line amortization table for these bonds.

Reference no: EM132573583

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