Tano issues bonds with a par value of $80,000 on January 1, 2015. 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 $75,938.

2.

How much total bond interest expense will be recognized over the life of these bonds?

Total bond interest expense over life of bonds:
Amount repaid:
6	payments of
Par value at maturity			80,000
Total repaid			80,000
Less amount borrowed			75,938
Total bond interest expense			$4,062

prepare an amortization table using the straight-line method to amortize the discount for these bonds. (Round your intermediate calculations to the nearest dollar amount.)

Semiannual Period-End	Unamortized Discount	Carrying Value
01/01/2015	$4,062	$75,938
06/30/2015	3,385
12/31/2015	2,708
06/30/2016	2,031
12/31/2016	1,354
06/30/2017
12/31/2017