Return to the facts of A11- 7. Assume now that New Company is a private company that complies with ASPE. Straight- line amortization will be used rather than the effective- interest method.

Required:

1. Calculate the price paid by New Company.

2. Construct a table that shows interest revenue reported by New Company, and the carrying value of the investment, for each interest period to maturity. Use the straight- line method.