1. Tweedsmuir Land Ltd has a substantial mortgage debt. The debt was $13 499 276 at the beginning of this year. Mortgage payments of $3 888 541 were made during the year and the mortgage balance was $10 851 299 at the end of the year. No new borrowing was made this year. Next year, the payments required total $4 105 640 and, if there is no new borrowing, the mortgage balance will be $7 742 879 at the end of next year. Calculate:

a. Interest expense for this year

b. Current portion of the mortgage liability at the end of this year

c. Noncurrent mortgage liability at the end of this year.
2. Yoho Portals Ltd issued $1000 first-mortgage bonds that have a total face value of $40 million and carry a 7.2 percent interest rate. They were not well received by the bond market, so Yoho received only $37 657 420 for them.

a. Record the bond issue

b. Calculate the balance sheet liability for the bonds, as of the issue date.
3. Regarding question 2, will Yoho's interest expenses for the bonds be more or less than 7.2 per cent times the face value ($2 880 000)? Why?