On January 1, 2016, Parker Company issued bonds with a face value of $76,000, a stated rate of interest of 7 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 9 percent at the time the bonds were issued. The bonds sold for $70,088. Parker used the effective interest rate method to amortize the bond discount.

a.	Prepare an amortization table.

Date	Cash Payment	Interest Expense	Discount Amortization	Carrying Value
January 1, 2016				70,088
December 31, 2016	5,320	6,308	988	71,076
December 31, 2017
December 31, 2018
December 31, 2019
December 31, 2020
Totals	5,320	6,308	988

b.	What is the carrying value that would appear on the 2019 balance sheet?

c.	What is the interest expense that would appear on the 2019 income statement?

d.	What is the amount of cash outflow for interest that would appear in the operating activities section of the 2019 statement of cash flows?