Tano Company issues bonds with a par value of $95,000 on January 1, 2019. The bonds annual contract rate is 8%, 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 10%, and the bonds are sold for $90,177. 1a. What is the amount of the discount on these bonds at issuance? 1b. How much total bond interest expense will be recognized over the life of these bonds? 1c. Prepare a straight-line amortization table for these bonds.

1a.

Amount of the discount

1b.

Total bond interest expense over life of bonds:

Amount repaid:

[blank] payments of [blank]

Par value at maturity: [blank]

total repaid: [blank]

less amount borrowed: [blank]

total bond interest expense: [blank]

1c:

semiannual period-end	unamortized discount	carrying value
01/01/2019
6/30/2019
12/31/2019
6/30/2020
12/31/2020