Use the following information for questions 1 through 3: On January 1, 2014, Ellison Co. issued eight-year bonds with a face value of $4,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31 The bonds were sold to yield 8% Table values are Present value of 1 for 8 periods at 6% Present value of 1 for 8 periods at 8% Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% Present value of annuity for 8 periods at 6%. Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 periods at 4% 627 540 823 6.210 5.747 12.561 11.652 534 1. The present value of the principal is a. $2,136.000. b. $2,160,000 . $2.492.000. d. $2,508,000 2. The present value of the interest is a. $1,379,280 b. $1,398,240, c. $1,490,400. d. $1,507,320 3. The issue price of the bonds is a. $3,534,240. b. $3,539,280. c. $3,558,240. d. $3,998,400. 4. Didde Company issues $20,000,000 face value of bonds at 96 on January 1, 2013. The bonds are dated January 1, 2013, pay interest semiannually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On September 1, 2016, $12,000,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2016? a. $1,200,000 loss b. $544,000 loss c. $720,000 loss d. $907,000 loss