In the following two independent cases, the company closes its books on December 31: 1. Skysong Inc. sells $2.08 million of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The bonds' due date is September 1, 2023. The bonds yield 10%. 2. Headlands Ltd. sells $6.40 million of 9% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The bonds' due date is June 1, 2024. The bonds yield 8%. On October 1, 2021, Headlands buys back $1.28 million worth of bonds for $1.86 million, including accrued interest. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Your answer is incorrect. For situation 1, use the effective interest method for discount and premium amortization and prepare any necessary amortization tables. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answers to O decimal places, e.g. 5,275.) Schedule of Bond Discount Amortization Effective Interest Method Date Cash Paid Interest Expense 3/1/20 9/1/20 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 Discount Amortized