Armstrong Manufacturing Inc. has outstanding $$240,000$ of $12\%$ debenture bonds. The bonds were issued at $109$ in $20x$ and mature in $20$ years.

Read the requirements.

Requirement $1.$ How much cash did Armstrong receive when it issued these bonds?

How much cash did Armstrong receive when it issued these bonds?

Requirement $2.$ How much cash in total will Armstrong pay the bondholders through the maturity date of the bonds?

How much cash in total will Armstrong pay the bondholders through the maturity date of the bonds?

Requirement $3.$ Take the difference between your answers to requirements $1$ and $2.$ This difference represents Armstrong's total interest expense over the life of the bonds.

What is the difference between your answers to requirements $1$ and $2?3.$

What is Armstrong's annual interest expense by the straight$-$line amortization method?

What is this amount multiplied by $20?$