1. Sandhill Company purchased, on January 1, 2025, as an available-for-sale security, $440,000 of the 6%, 5-year bonds of Oak Corporation for $380,203, which provides an 8% return. The bonds pay interest semi-annually on June 30th and December 31st.

For this case, prepare an amortization table. Use the effective-interest method for discount and premium amortization (construct an amortization table). Amortize premium or discount on interest dates and at year-end. (Assume that no reversing entries were made.)

Maturity Value of Bonds

Purchase Price of Bonds

Stated Interest Rate

Bond Yield Rate

Interest Payment Term (fraction of annual)

Date	Cash Received	Interest Revenue	Bond Discount Amortization	Carrying Amount of Bonds
1/1/2025
6/30/2025
12/31/2025
6/30/2026
12/31/2026
6/30/2027
12/31/2027
6/30/2028
12/31/2028
6/30/2029
12/31/2029
6/30/2030
12/31/2030
6/30/2031
12/31/2031
6/30/2032
12/31/2032
6/30/2033
12/31/2033
6/30/2034
12/31/2034