Parent Company possesses an 80 percent interest in Investee Company . On January 1 , Year 1 , Investee Company issued $1 million in 10-year bonds paying cash interest of 9 percent annually . Investee Company sold this debt for $ 938,555 to yield an effective interest rate of 10 percent per year. On January 1, Year 3, Parent company purchased all of these bonds in the open market for $ 1,057,466 . This price reflects an effective yield of 8 percent due to market interest rates as of that date .

.Can you do the amortization schedule using the effective interest method. Also please show your work as to how you got the numbers over the years.