On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $5,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:

Present value of 1 for 10 periods at 10%		.386
Present value of 1 for 10 periods at 12%		.322
Present value of 1 for 20 periods at 5%		.377
Present value of 1 for 20 periods at 6%		.312
Present value of annuity for 10 periods at 10%		6.145
Present value of annuity for 10 periods at 12%		5.650
Present value of annuity for 20 periods at 5%		12.462
Present value of annuity for 20 periods at 6%		11.470

Calculate the issue price of the bonds.

Prepare the amortization table for 2018, assuming that amortization is recorded on interest payment dates using the effective-interest method.

Date	Cash	Expense	Amortization	Carrying Amount
1/1/18				$
6/30/18	$	$
12/31/18