Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 4 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 6 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance January 1, Year 1 $947 December 31, Year 1 $40 $57 $17 964 December 31, Year 2 40 58 18 982 December 31, Year 3 40 58 18 1,000 Required: 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 4. Show how the following amounts were computed for Year 2: (a) $40, (b) $58, (c) $18, and (d) $982. Complete this question by entering your answers in the tabs below. Req 1]to 3 Req 4 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 1. Bond issue price 2. Bonds payable year 1 3. Bonds payable year 2