Quatro Company issues bonds dated January 1, 2021, with a par value of $400,000. The bonds annual contract rate is 13%, 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 12%, and the bonds are sold for $409,850.

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.

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

Semiannual Interest Period-End	Unamortized Premium	Carrying Value
01/01/2021	$9,850selected answer correct	$409,850selected answer correct
06/30/2021	8,441selected answer incorrect	408,441selected answer incorrect
12/31/2021	6,947selected answer incorrect	406,947selected answer incorrect
06/30/2022	5,364selected answer incorrect	405,364
12/31/2022	3,686selected answer incorrect	403,686
06/30/2023	2,044	402,044
12/31/2023	0	400,000