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Quatro Company issues bonds dated January 1, 2021, with a par value of $750,000. The bonds' annual contract rate is 9%, and interest is
Quatro Company issues bonds dated January 1, 2021, with a par value of $750,000. The bonds' annual contract rate is 9%, 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 8%, and the bonds are sold for $769,646. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 $ 19,646 $ 769,646 06/30/2021 16,372 766,372 12/31/2021 13,098 763,098 06/30/2022 9,824 759,824 12/31/2022 3,274 753,274 06/30/2023 0 750,000 12/31/2023 750,000 Required 2 Required 3
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