P1. FWP Co. issued $100,000, 10-year bonds on January 1, 2011. The stated rate of interest on the bonds is 10% payable annually on 12/31. Provide the requested information for the bonds immediately after issuance (January 1, 2011) under each of the three independent scenarios described below:

P2. Bonds with a stated interest rate of 9% and a face value totaling $600,000 were issued at 104 on January 1, 2011, implying an annual market interest rate of 8%. Assuming that interest is computed annually, at what carrying value should the total liability for these bonds be reported two years later on December 31, 2012, if the effective-interest method of amortization is used?