Quatro Co. issues bonds dated January 1, 2020, with a par value of $850,000. The bonds annual contract rate is 12%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $893,131. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table for these bonds.

What is the amount of the premium on these bonds at issuance?

Premium

• Required

Amount repaid:

payments of

Par value at maturity

Total repaid

Less amount borrowed

Total bond interest expense

Prepare a straight-line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount.)

Semiannual Interest Period-End	Unamortized Premium	Carrying Value
01/01/2020
06/30/2020
12/31/2020
06/30/2021
12/31/2021
06/30/2022
12/31/2022