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How do i calculate the unamortized discount? Tano Company issues bonds with a par value of $95,000 on January 1, 2019. The bonds' annual contract
How do i calculate the unamortized discount?
Tano Company issues bonds with a par value of $95,000 on January 1, 2019. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $90,177. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a straight-line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount.) Semiannual Period-End 01/01/2019 06/30/2019 12/31/2019 06/30/2020 Unamortized Carrying Discount Value $ 3,800 $ 90,177 804 90,981 804 91,785 804 92,589 804 93,393 804 9 4,196 $ 0 $ 95,000 12/31/2020 06/30/2021 12/31/2021Step by Step Solution
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