value: 8.00 points Problem 15-17 Integrating problem; bonds; note; lease [L015-5] You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended December 31, 2016. Your accounting group provided you the following information on the company's debt (FV of $1. PV of $1. EVA of S1. PVA of S1. FVAD Of S1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On July 1, 2016, Moonlight Bay issued bonds with a face amount of $1,700,000. The bonds mature in 15 years and interest of 11% is payable semiannually on June 30 and December 31 The bonds were issued at a price to yield investors 12% Moonlight Bay records interest at the effective rate At December 31, 2015, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $640,000. The annual payment is $130,000, payable each June 30 2. 3. On January 1, 2016, Moonlight Bay leased a building under a capital lease calling for four annual lease payments of $55,000 beginning January 1, 2016 Moonlight Bay's incremental borrowing rate on the date of the lease was 12% and the lessor's implicit rate, which was known by Moonlight Bay, was 1 196. Required: Calculate interest expense for the year ended December 31, 2016 Interest expenseS 164.064 Reterences eBook& Resources Worksheet Oifficulity 2 Medium Problem 15-17 Integrating problem; bonds; note: lease tL015-51 aming Ob/edi ' 0', 0 for a capital lease Check nv.work Erevious ateme