On January 1, 2018, Morton Sales Co. issued zero-coupon bonds with a face value of $6.4 million for cash. The bonds mature in 10 years and were issued at a price of $2,467,456

Required: What was the annual effective interest rate in the market when the bonds were issued?

What amount of interest expense on these bonds would Morton Sales Co. report in its 2018 income statement?

What will Morton Sales Co. report on these bonds in its December 31, 2018, balance sheet?

What total interest expense will Morton Sales Co. report over the 10 year life of these bonds?