Use the following amortization schedule to respond to the questions provided below:

CASH	EFFECTIVE	INCREASE/	OUTSTANDING
	INTEREST	INTEREST	DECREASE	BALANCE
				349,054
1	9.000	6,981	2,019	347,035
2	9,000	6,941	2,059	344,976
3	9,000	6,900	2,100	342,876
-
-
19	9,000	6,116	2,884	302,941
20	9,000	6,059	2,941	300,000

Required: (important - provide calculations and support for all answers)

a. Calculate the selling price of the bonds.

b. Were the bonds issued at face, discount or premium?

c. Provide two sets of circumstances that support your response to b.

d. What is the carrying value of the bonds at the end of year 2.