Eagle Corporation issued $$9,850,000,5$ percent bonds dated April $1,$ year $1.$ The market interest rate was $6$ percent, with interest paid each March $31.$ The bonds mature in three years, on March $31,$ year $4.$ Eagle$$s fiscal year ends on December $31.$ Use Table $8$C$\mathrm{.}1,$ Table $8$C$\mathrm{.}2.$

Required:

$1.$ 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.$)$

$2.$ 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.$)$

$3.$ 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.$)$

$4-$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.$)$

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

multiple choice

Yes

No