On January 1, Year 1, Company C purchased 10 of the $10,000 face value, 10%, 2-year bonds of Company D. The bonds mature on December 31, Year 2, and pay interest annually on December 31. Company C purchased the bonds to yield 12% and classified the bonds as held-to-maturity. The company's policy is to amortize the bonds' premium or discount according to the effective interest method. Information on present value factors is a as follows:

Present value of $1 at 10% for two periods	0.8264
Present value of $1 at 12% for two periods	0.7972
Present value of an annuity of $1 at 10% for two periods	1.7355
Present value of an annuity of $1 at 12% for two periods	1.6901

Enter the appropriate amounts in the designated cells below. Round all amounts to the nearest dollar. If no entry is necessary, enter a zero (0). Enter all amounts as positive values.

Item	Amount
1. The amount Company C paid for the bonds.
2. The amount of discount on the bonds on January 1, Year 1.
3. The amount of cash interest received by Company C during Year 1.
4. The amount of interest revenue recognized in Year 1 income statement.
5. The amount of the bonds' discount amortized in Year 1.
6. The carrying amount of the bonds presented in the December 31, Year 1, financial statements.