Problems 12-9 Reading the financials (LO 12-1, LO 12-2, LO 12-7)

You have the following information for Brophy, Inc.

	December 31
Long-Term Debt ($ in millions)	Year 2			Year 1
7% debentures, $300 million face value, due Year 11, effective rate $14.6%	$	188.6		$	182.7
Zero coupon bonds, $500 million face value, due Year 8, effective rate 12.0%		267.9			239.2
Mortgage debt, $850 million face value, due Year 5, effective rate 8.7%, secured by corporate headquarters		834.5			833.9
Various other long-term debt		12,444.2			16,329.2
Total long-term debt	$	13,735.2		$	17,585.0

1. How much interest expense did the company record during Year 2 on the 7% debentures? How much of the original issue discount was amortized during Year 2?
2. How much interest expense did the company record during Year 2 on the zero coupon bonds?

Assume the interest for all the bonds are based on annual basis.

		Amount
1.	Interest expense
	Total discount amortization
. .	Interest expense