Assume that the notes to Pemberton Ltd.'s financial statements reported the following data on September 30, 2014:

NOTE E: LONG-TERM DEBT

5-percent debentures due 2033, net of unamortized discount of $223,162 (effective interest rate of 6.0 percent)............................................................................$1,776,838

Pemberton Ltd. amortizes the discount by the effective-interest method.

Required

1. Answer the following questions about Pemberton Ltd.'s long-term liabilities:

a. What is the maturity value of the 5-percent debentures?

b. What is the carrying amount of the 5-percent debentures at September 30, 2014?

c. What are Pemberton Ltd.'s annual cash interest payments on these debentures?

2. Prepare an amortization table through September 30, 2016, for the 5-percent debentures. Pemberton Ltd. pays interest annually on September 30.

3. Record the September 30, 2016, interest payments on the 5-percent debentures.

4. What is Pemberton Ltd.'s carrying amount of the 5-percent debentures at September 30, 2016, immediately after the interest payment?