"On December 31, 20X1, Art Levinsen Corporation issued 1,000, 6% bonds with a 20-year maturity. The bonds pay interest semiannually (on June 30 and December 31), and the market/effective interest rate is 10%. HINT: the face of all bonds is $1,000 unless otherwise stated.

"c) Use the bond amortization schedule that begins in cell D49to respond to this question. Calculate total interest expense Art Levinsen Corporation will record on the books from January 2, 20X2, through December 31, 20X9 (assume zero interest expense during 20X1).

A B C D E F

Period Interest Interest Expense Amortization of UN-Amortized Carrying value of

Payments [F x 1/2 Mkt rate: Cell E14]" bonds discounts Discount bonds

To Investors [C - B] [Prior pd amt-D [Prior pd amt + E

[Face X 1/2 Contract

0 343,181.73 656,818.27

1 30,000 32,840.91 2,840.91 340,340.81 659,659.19

2 30,000 32,982.96 2,982.96 337,357.85 662,642.15

3 30,000 33,132.11 3,132.11 334,225.75 665,774.25

4 30,000 33,288.71 3,288.71 330,937.03 669,062.97

5 30,000 33,453.15 3,453.15 327,483.89 672,516.11

6 30,000 33,625.81 3,625.81 323,858.08 676,141.92

7 30,000 33,807.10 3,807.10 320,050.98 679,949.02

8 30,000 33,997.45 3,997.45 316,053.53 683,946.47

9 30,000 34,197.32 4,197.32 311,856.21 688,143.79

10 30,000 34,407.19 4,407.19 307,449.02 692,550.98

11 30,000 34,627.55 4,627.55 302,821.47 697,178.53

12 30,000 34,858.93 4,858.93 297,962.55 702,037.45

13 30,000 35,101.87 5,101.87 292,860.67 707,139.33

14 30,000 35,356.97 5,356.97 287,503.71 712,496.29

15 30,000 35,624.81 5,624.81 281,878.89 718,121.11

16 30,000 35,906.06 5,906.06 275,972.84 724,027.16

17 30,000 36,201.36 6,201.36 269,771.48 730,228.52

18 30,000 36,511.43 6,511.43 263,260.05 736,739.95

19 30,000 36,837.00 6,837.00 256,423.05 743,576.95

20 30,000 37,178.85 7,178.85 249,244.21 750,755.79

21 30,000 37,537.79 7,537.79 241,706.42 758,293.58

22 30,000 37,914.68 7,914.68 233,791.74 766,208.26

23 30,000 38,310.41 8,310.41 225,481.32 774,518.68

24 30,000 38,725.93 8,725.93 216,755.39 783,244.61

25 30,000 39,162.23 9,162.23 207,593.16 792,406.84

26 30,000 39,620.34 9,620.34 197,972.82 802,027.18

27 30,000 40,101.36 10,101.36 187,871.46 812,128.54

28 30,000 40,606.43 10,606.43 177,265.03 822,734.97

29 30,000 41,136.75 11,136.75 166,128.28 833,871.72