What is the amount of total interest expense reported

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On January 1, Year 1, a corporation issued $800,000, 4%, 10-year bonds for a selling price of $680,984. The bonds pay interest semi-annually on June 30 and December 31. The market rate of interest is 6%. Create a bond amortization table to answer Parts A-D below. Round all numbers to the nearest whole dollar.

Problem 1: What is the carrying value of the bond after the third interest payment is made on June 30, Year 2?

Problem 2: What is the amount of total interest expense reported on the income statement for the year ending December 31, Year 2?

Problem 3: What is the amount of total cash interest payments made in the year ended December 31, Year 2?

Problem 4: What is the unamortized discount or premium after interest payments are recorded on December 31, Year 2?

Reference no: EM132758885

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