WILL RATE FAST:

E14.9B (LO 1) (Entries and Questions for Bond Transactions) On July 1, 2020, Sugarland Company issued $2,000,000 face value of 10%, 10-year bonds at $1,770,602, a yield of 12%. Sugarland uses the effective-interest method to amortize bond pre- mium or discount. The bonds pay semiannual interest on June 30 and December 31. Instructione (b) Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (c) Provide the answers to the following questions. (1) What amount of interest expense is reported for 2021? (2) Will the bond interest expense reported in 2021 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? (3) Determine the total cost of borrowing over the life of the bond. (4) Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total inter- est expense if the straight-line method of amortization were used