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On January 1 of this year, Ikuta Company issued a bond with a face value of $290,000 and a coupon rate of 6 percent. The
On January 1 of this year, Ikuta Company issued a bond with a face value of $290,000 and a coupon rate of 6 percent. The bond matures in 3 years and pays interest every December 31 . When the bond was issued, the annual market rate of interest was 7 percent. Ikuta uses the effective-interest amortization method. (FV of $1,PV of $1,FVA of $1, and PVA of $1 ) Note: Use appropriate factor(s) from the tables provided. Required: 1. Complete a bond amortization schedule for all three years of the bond's life. 2. What amounts will be reported on the income statement and balance sheet at the end of Year 1 and Year 2 ? Complete this question by entering your answers in the tabs below. What amounts will be reported on the income statement and balance sheet at the end of 1 and Year Note: Round your intermediate calculations and final answers to whole dollars
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