$!$

Required information

$[$The following information applies to the questions displayed below.$]$

PowerTap Utilities is planning to issue bonds with a face value of

$$1,200,000$ and a coupon rate of $8$ percent. The bonds mature in $8$ years

and pay interest semiannually every June $30$ and December $31.$ All of the

bonds were sold on January $1$ of Year $1.$ PowerTap uses the effective$-$

interest amortization method. Assume an annual market rate of interest of

$10$ percent. $($ PV of $$1$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

What is the book value of the bonds on June $30$ and December $31$ of Year $1?$

Note: Round your final answers to nearest whole dollar amount. $!$

Required information

$[$The following information applies to the questions displayed below.$]$

PowerTap Utilities is planning to issue bonds with a face value of

$$1,200,000$ and a coupon rate of $8$ percent. The bonds mature in $8$ years

and pay interest semiannually every June $30$ and December $31.$ All of the

bonds were sold on January $1$ of Year $1.$ PowerTap uses the effective$-$

interest amortization method. Assume an annual market rate of interest of

$10$ percent. $($ PV of $$1$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Required:

What is the book value $($issue price$)$ of the bond at the date of issue on January $1$ of Year

$1?$

Note: Round your final answer to nearest whole dollar amount. Required information

$[$The following information applies to the questions displayed below.$]$

PowerTap Utilities is planning to issue bonds with a face value of

$$1,200,000$ and a coupon rate of $8$ percent. The bonds mature in $8$ years

and pay interest semiannually every June $30$ and December $31.$ All of the

bonds were sold on January $1$ of Year $1.$ PowerTap uses the effective$-$

interest amortization method. Assume an annual market rate of interest of

$10$ percent. $($ PV of $$1$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

What amount of interest expense should be recorded on June $30$ and December $31$ of

Year $1?$

Note: Round your final answers to nearest whole dollar amount.