*SOLVE USING EXCEL*

Prepare an additional 2 bond amortization tables for ISU assuming the straight-line amortization method was used since the results were not materially different from the effective interest method. For the SL tables calculate the discount/premium amortization by dividing the total discount/premium by the number of interest payments (10), the cash payment is fixed and you plug the amount of interest expense. Every line of the SL table is the same except the bond carrying value changes. See an example of a SL amortization table on the next page. Amortization Table Straight-Line Method