On June 1, 2024, Longstaff Company issued $3,000,000, 8%, 10-year bonds. The bonds were issued to yield 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method.

(a) Prepare a detailed calculation of the present value of the bond using present value factors. You must include the present value factors in your solution.

(b) Construct a bond amortization table. Include only the first four years. Make sure all columns and rows are properly labeled. Round to the nearest dollar.

(c) Assuming that interest and discount/premium amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2026. Round to the nearest dollar.