Larkspur Corporation issued $500,000 of 4% percent, 10-year bonds on January 1, 2021. Interest is paid annually, and the straight-line method is used to amortize premium or discount.

If the bonds were issued at a price of 106, how much cash was received?

What is the amount of the annual interest payment?

Were the bonds issued at a premium or discount?

What was the carrying value of the bonds at the time of issue?

How much premium or discount is amortized at the time of each interest payment?