On 1 July 20X8, Sun Company purchased $4,200,000 of Moon Corp. 6.1% bonds, classified as an AC investment. The bonds pay semi- annual interest each 30 June and 31 December. The market interest rate was 6% on the date of purchase. The bonds mature on 30 June 20X3. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Sun Company. (Round time value factor to 5 decimal places. Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) Price paid 2. Construct a table that shows interest revenue reported by Sun, and the carrying value of the investment, for each interest period for four interest periods. Use the effective-interest method. (Round your answers to the nearest whole dollar amount.) Period 0 1 2 3 4 Cash Payment 3% Interest Revenue Amortization Bond Carrying Value

On 1 July 208, Sun Company purchased $4,200,000 of Moon Corp. 6.1% bonds, classified as an AC investment. The bonds pay semiannual interest each 30 June and 31 December. The market interest rate was 6% on the date of purchase. The bonds mature on 30 June 203. (PV of \$1, PVA of \$1, and PVAD of \$1) (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the price paid by Sun Company. (Round time value factor to 5 decimal places. Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollor amount.) 2. Construct a table that shows interest revenue reported by Sun, and the carrying value of the investment, for eoch interest period for four interest periods. Use the effective-interest method. (Round your answers to the nearest whole dollar amount.)