Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $680,186 and their market rate is 10% at the issue date.

Determine the total bond interest expense to be recognized over the bonds' life.

Prepare a straight-line amortization table for the bonds' first two years.

2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: C Amount repaid: payments of Par value at maturity 740,000 Total repaid 740,000 Less amount borrowed Total bond interest expense $ 740,000 3. Prepare a straight-line amortization table for the bonds' first two years. Semiannual Period- Unamortized Carrying Value End Discount 01/01/2017 06/30/2017 12/31/2017 06/30/2018 12/31/2018