Eagle Corporation issued $$9,750,000,10$ percent bonds dated April $1,$ year $1.$ The market interest rate was $11$ percent, with interest paid

each March $31.$ The bonds mature in three years, on March $31,$ year $4.$ Eagle's fiscal year ends on December $31.$ Use Table $8$C$\mathrm{.}1,$ Table

$8$C$\mathrm{.}2.$

Required:

What was the issue price of these bonds? $($Round time value factor to $4$ decimal places. Round the final answer to the nearest

whole dollar.$)$

Bond issue price

Compute the interest expense for the period ended December $31,$ year $1.$ The company uses the effective$-$interest method of

amortization. $($Round time value factor to $4$ decimal places. Round intermediate and final answer to the nearest whole dollar.$)$

Interest expense

Show how the bonds should be reported on the statement of financial position at December $31,$ year $1.($Round intermediate and

final answer to the nearest whole dollar.$)$

EAGLE CORPORATION

As of December $31,$ Year $1$

Statement of financial position:

Bonds payable

$4-$a$.$ What amount of interest expense will be recorded on March $31,$ year $2?($Round time value factor to $4$ decimal places. Round the

final answer to the nearest dollar amount.$)$

Interest expense

$4-$b$.$ Is this amount different from the amount of cash that is paid?

Yes

No