On January 1, 2017, Monty Company acquires $160,000 of Spiderman Products, Inc., 10% bonds at a price of $152,314. Interest is received on January 1 of each year, and the bonds mature on January 1, 2020. The investment will provide Monty Company a 12% yield. The bonds are classified as held-to-maturity.

(a)

Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 2,500.)

Schedule of Interest Revenue and Bond Discount Amortization Straight-line Method Bond Purchased to Yield
Date		Cash Received		Interest Revenue		Bond Discount Amortization		Carrying Amount of Bonds
1/1/17		$		$		$		$
1/1/18
1/1/19
1/1/20