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I have the answers. but i do not know how to show the work to get to the solution. please help. On January 1, 2011,

I have the answers. but i do not know how to show the work to get to the solution. please help.

On January 1, 2011, Jason Company issued $5 million of 10-year bonds at a 10% stated interest rate to be paid annually. The following present value factors have been provided to answer the subsequent questions:

Time Period

Interest

PV of $

PV of Annuity

10

10%

0.386

6.145

10

8%

0.463

6.710

10

12%

0.322

5.650

If Jason issued the bonds at a price of 106.5, how much would the premium amortizationbe on December 31, 2011 under the straight-line method?

$32,500

How much cash interest would be paid by Jason on December 31, 2011?

$500,000

If Jason issued the bonds at price of 106.5, the amount of interest expense on December31, 2011 under the straight-line amortization method equals

$467,500

If Jason issued the bonds at a price of 106.5, what is the book value of Jasons bonds onDecember 31, 2011 after the interest payment assuming the straight-line method is usd?

$5,292,500

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