Computing Amounts under Effective Interest and Straight-Line Interest Methods For the following separate bond issues, assume that the bonds are sold on January 1 of Year 1, interest is paid semiannually on July 1 and December 31, and the bond term is 5 years. Complete the following schedule by measuring the bond selling price on January 1 of Year 1, and interest expense and interest paid for Year 1. Note: Round your answers to the nearest whole dollar. Face Value Stated Market Amortization Bond Selling Interest Interest Case of Bonds Rate Rate Method Price Expense Year 1 Paid Year 1 1 $25,000 5% 6% Effective interest $ 0 $ 0 $ 0 2 100,000 4% 5% Effective interest 0 0 0 3 325,000 5% 4% Straight-line 0 0 0 4 1,250,000 0% 7% Straight-line 0 0 0 5 200,000 7% 6% Effective interest 0 0 0 60 250,000 6% 8% Straight-line 0 0 0