1 01:57:37 Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 4 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 7 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance January 1, Year 1 December 31, Year 1 December 31, Year 2 $921 $40 40 $64 66 $24 945 26 971 December 31, Year 3 40 69 29 1,000 Required: 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 4. Show how the following amounts were computed for Year 2: (a) $40, (b) $66, (c) $26, and (d) $971. Complete this question by entering your answers in the tabs below. Required 1 to Required 4 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 1. Bond issue price 3. Bonds payable year 1 3. Bonds payable year 2 E