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Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 8 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Interest me Amortization Paid Expense $16 January 1, Year 1 December 31, Year 1 December 31, Year 2 December 31, Year 3 $ 60 60 60 $76 77 79 Balance $948 964 981 1,000 Required: (Hint: Use the information in the table to answer the questions. You do not need to make your own table.) 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 4. Show how the following amounts were computed for Year 2: (a) $60, (b) $77, (c) $17, and (d) $981. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 1. Bond issue price Bonds Payable year 1 Bonds Payable year 2