On June $1,2013,$ Everly Bottle Company sold $$2,000,000$ in long$-$term bonds for $$1,754,200.$ The bonds will mature in $10$ years and have a stated interest rate of $8\%$ and a yield rate of $10\%.$ The bonds pay interest annually on May $31$ of each year. The bonds are to be accounted for under the effective$-$interest method. $($Hint$)$: Review chapter $9,$ page $299$ and subsequent pages in your textbook$)$

Instructions

A$.$ Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization each May $31.$ Include only the first four years. Make sure all columns and rows are properly labeled. $($Round to the nearest dollar.$)$

B$.$ The sales price of $$1,754,200$ was determined from present value tables. Specifically, explain how one would determine the price using present value tables.