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On January 1 Year 1, Hart Company issued bonds with a face value of $130,000, a stated rate of interest of 14 percent, and a

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On January 1 Year 1, Hart Company issued bonds with a face value of $130,000, a stated rate of interest of 14 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 13 percent at the time the bonds were issued. The bonds sold for $134,572 Hart used the effective interest rate method to amortize the bond premium (Round your intermediate calculations and final answers to the nearest whole number.) Required a. Prepare an amortization table Answer is not complete. Interest Premium Expense Amortization Date Cash Payment Carrying Value $131,572 133.866 s January 1, Year 1 December 31, Year 1 December 31, Year 2 December 31, Year 3 December 31, Year 4 December 31. Year 5 Totals $ 18.200 18.200 18,200 18,200 18,200 $ 91,000 $17.494 17.403 17.299 17,182 17.050 $ 38,428 706 797 901 1,018 1,150 4,572 $ b. What is the carrying value that would appear on the Year 4 balance sheet? c. What is the interest expense that would appear on the Year 4 income statement? d. What is the amount of cash outflow for interest that would appear in the operating activities section of the Year 4 statement of cash flows? Answer is complete and correct. b C. Carrying value on the Year 4 Interest expense for Your 4 Cash outflow for interest in Year 4 $ 131,150 $ 17182 $ 18.200 d

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