A. (4 points) On January 1, 2017, Swifty Company sold 11% bonds having a maturity value of $550,000 for $570,849, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Swifty Company allocates interest and unamortized discount or premium on the effective-interest basis. Prepare a schedule of interest expense and bond amortization for 2017-2019 Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Date Cash Paid Interest Expense Premium Amortized Carrying Amount of Bonds 1/1/17 12/31/17 12/31/18 12/31/19 B. (4 points) On December 31, 2017, Ivanhoe Company acquired a computer from Plato Corporation by issuing a $574,000 zero-interest-bearing note, payable in full on December 31, 2021. Ivanhoe Company's credit rating permits it to borrow funds from its several lines of credit at 12%. The computer is expected to have a 5-year life and a $76,000 salvage value. a. Prepare the journal entry for the purchase on December 31, 2017 Accounts DR Date 12/31/17 b. Prepare any necessary adjusting entries relative to depreciation (use straight-line) and amortization (use effective-interest method) on December 31, 2018. Accounts DR Depr. Interest