Sandhill Company issued $552,000 of 9%, 7-year bonds on January 1, 2021. The bonds pay interest annually. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1

(a)

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Assuming the market interest rate on January 1, 2021, was 8%, calculate the bonds issue price. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 1,575.)

Bond issue price

$

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(b)

Prepare an effective interest amortization table for this bond. (Round answers to 0 decimal places, e.g. 5,276.)

SANDHILL COMPANY Bond Premium Amortization Table Effective-Interest MethodAnnual Interest Payments 9% Bonds Issued at market rate of 8%
Date		Interest Payment		Interest Expense		Premium Amortization		Bond Amortized Cost
Jan. 1, 2021		$		$		$		$
Jan. 1, 2022
Jan. 1, 2023
Jan. 1, 2024
Jan. 1, 2025
Jan. 1, 2026
Jan. 1, 2027
Jan. 1, 2028