The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): (Click the icon to view the financial statement data.) Thorson amortizes bond discounts using the effective-interest method and pays all interest amounts at December 31. Read the requirements. Requirement 1. Assume the market interest rate is 6% on January 1 of year 1, the date the bonds are issued. (Round your answers to the nearest whole dollar.) Data table a. Using the PV function in Excel, what is the issue price of the bonds? The issue price of the bonds is b. What is the maturity value of the bonds? The maturity value of the bonds is c. What is Thorson's annual cash interest payment on the bonds? The annual cash interest payment is d. What is the carrying amount of the bonds at December 31, year 1? The carrying amount of the bonds at December 31, Year 1 is Note 6. Indebtedness Bonds payable, 1% due on December 31, Year 8 Less: Discount $ 3,500,000 ? Notes payable, 6%, payable in $45,000 annual installments starting in Year 5 $ 270,000 Print Done Requirement 2. Prepare an amortization table through December 31, Year 4 for the bonds. (Round all amounts to the nearest dollar.) How much is Thorson's interest expense on the bonds for the year ended December 31, Year 4? Begin by preparing the amortization table through December 31, Year 4 for the bonds. (Round your answer to the nearest whole dollar.) Requirements Annual Interest Date Interest Payment Interest Expense Thorson Ltd. Amortization Table Discount Amortization Discount Account Bond Carrying Balance Amount Jan 1, Yr 1 Dec 31, Yr 1 Dec 31, Yr 2 Dec 31, Yr 3 Dec 31, Yr 4 1. Assume the market interest rate is 6% on January 1 of year 1, the date the bonds are issued. a. Using the PV function in Excel, what is the issue price of the bonds? b. What is the maturity value of the bonds? c. What is Thorson's annual cash interest payment on the bonds? d. What is the carrying amount of the bonds at December 31, year 1? 2. Prepare an amortization table through December 31, Year 4 for the bonds. (Round all amounts to the nearest dollar.) How much is Thorson's interest expense on the bonds for the year ended December 31, Year 4? 3. Show how Thorson would report these bonds and notes at December 31, Year 4.