ACE Furniture. Inc., issued $400.000 of 6%, five-year bonds payable to partially finance a warehouse. At the time of issuance, the market interest rate was 8%. so ACE received cash of $368.058. ACE pays interest annually. 1. Prepare ACE's effective-interest amortization table for the bonds. Use Exhibit 15-4 (page 589) as a guide, and round amounts to the nearest dollar. 2. Use the amortization table to answer these questions about ACE's bonds payable and related interest expense:

a. At what amount will ACE report the bonds payable at the end of Year 1? At the end of Year 3?

b. How much cash interest will ACE pay for Year 1? Year 3? Year 5?

c. How much interest expense will ACE record for Year 1? Year 5?