1) On January 1, 2017, Oriole Company issued ten-year bonds with a face amount of $4700000 and a stated interest rate of 8% payable annually on January 1. The bonds were priced to yield 10%. Present value factors are as follows:

		At 8%		At 10%
Present value of 1 for 10 periods		0.463		0.386
Present value of an ordinary annuity of 1 for 10 periods		6.710		6.145

The total issue price of the bonds was

$4124720.

$4700000.

$4324000.

$4606000.

2) On January 1, 2018, Waterway Industries issued its 12% bonds in the face amount of $8020000, which mature on January 1, 2028. The bonds were issued for $9130000 to yield 10%, resulting in bond premium of $1110000. Waterway uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2018, Waterway's adjusted unamortized bond premium should be

$866200.

$1110000.

$976800.

$1060600.