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The following partial amortization schedule is available for Sandhill Co. who sold $638000, 5-year, 10% bonds on January 1, 2020 for $663000 and uses annual

The following partial amortization schedule is available for Sandhill Co. who sold $638000, 5-year, 10% bonds on January 1, 2020 for $663000 and uses annual straight-line amortization.

BOND AMORTIZATION SCHEDULE

Interest Periods

Interest to be paid

Interest expense

Premium Amortization

Unamortized Premium

Bond Carrying Value

January 1, 2020

$25000 $663000

January 1, 2021

(i) (ii) (iii) (iv) (v)

Which of the following amounts should be shown in cell (iii)?

$25000

$5000

$12500

$2500

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