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On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable annually on

On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable annually on December 31. The bonds were sold to yield 8%. Table values are:

Present value of 1 for 8 periods at6%............................................627

Present value of 1 for 8 periods at8%............................................540

Present value of 1 for 16 periods at3%..........................................623

Present value of 1 for 16 periods at4%..........................................534

Present value of annuity for 8 periods at6%.................................6.210

Present value of annuity for 8 periods at8%.................................5.747

Present value of annuity for 16 periods at3%...............................12.561

Present value of annuity for 16 periods at4%...............................11.652

The present value of the interest is

$2,068,920

$2,097,360

$2,235,600

$2,260,980

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