Multiple Choice Question 61

On January 1, 2014, Ellison Co. issued eight-year bonds with a face value of $4,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are:

Present value of 1 for 8 periods at 6%	.627
Present value of 1 for 8 periods at 8%	.540
Present value of 1 for 16 periods at 3%	.623
Present value of 1 for 16 periods at 4%	.534
Present value of annuity for 8 periods at 6%	6.210
Present value of annuity for 8 periods at 8%	5.747
Present value of annuity for 16 periods at 3%	12.561
Present value of annuity for 16 periods at 4%	11.652

The present value of the interest is following:

$1,398,240.

$1,490,400.

$1,507,320.

$1,379,280.

Please provide solutions, too.