On January 1, Year 1, Hart Company issued bonds with a face value of $103,000, a stated rate of interest of 10 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 9 percent at the time the bonds were issued. The bonds sold for $107,006. 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.

Date	Cash Payment	Interest Expense	Premium Amortization	Carrying Value
January 1, Year 1				107,006
December 31, Year 1	10,300	9,631	669	106,337
December 31, Year 2
December 31, Year 3
December 31, Year 4
December 31, Year 5
Totals

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?

b.	Carrying Value on the Year 4
c.	Interest Expense for Year 4
d.	Cash Outflow for interest in Year 4