40. National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yreld was 10%. Interest is paid semiannually on June 30 and December 31. The price of the bonds is $483,842. Complete the amortization schedule below - Date Cash Interest Interest Expense Discount on Bond Carrying Value of Bonds 01/01/2021 06/30/2021 12/31/2021 37. An essential element of a lease conveyance is that the: A. lessor conveys less than his or her total interest in the property. B. lessee provides a sinking fund equal to one year's lease payments. C. property that is the subject of the lease agreement must be held for sale by the lessor prior to the drafting of the lease agreement. D. term of the lease is substantially equal to the economic life of the leased property. 38. Which of the following is not one of the commonly discussed advantages of leasing for the lessee? A. Leasing permits 100% financing at fixed rates. B. Leasing permits changes in equipment more easily thus reducing the risk of obsolescence. C. Leasing improves financial ratios by increasing assets without a corresponding increase in debt. D. Lease agreements may contain less restrictive provisions than other debt agreements. 39. Which of the following is not one of the commonly discussed advantages of lease for the lessor? A. The lessor has the right of first priority to use the leased asset since the lessor is still the owner of the asset B. It often provides profitable interest margins. C. It can provide a high residual value to the lessor upon return of the property at the end of the lease term D. It often provides tax benefits to various parties in the lease. National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 21. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market eld was 10%. Interest is paid semiannually on June 30 and December 31. The price of the bonds is $483,84 omplete the amortization schedule below - Date Cash Interest Interest Expense Discount on Bond Carrying Value Bonds /01/2021