On January 1, 2018, Sean purchased an 8%, $100,000 corporate bond for $92,277. The bond was issued on January 1, 2018, and matures on January 1, 2023. Interest is paid semiannually, and the effective yield co maturity is 10% compounded semiannually. On July l, 2019, Sean sells the bond for $95,949. A schedule of interest amortization for the bond is shown in Table 1:5?3.

a. How much interest income must Sean recognize in 2018?

b. How much interest income must Sean recognize in 2019?

c. How much gain must Sean recognize in 2019 on the sale of the bond?

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▼ TABLE I:5-3 Interest Amortization for Problem I:5-57 Interest Received Amortization of Discount Interest Income (1) (2) (3) = (1) + (2) $4,000 4,000 4,000 4,000 $614 $4,614 4,645 4,677 4,711 4,747 4,783 6-30-18 12-31-18 645 6-30-19 677 12-31-19 711 6-30-20 4,000 747 4,000 4,000 4,000 12-31-20 783 6-30-21 823 864 4,823 4,864 12-31-21 6-30-22 4,000 907 4,907 12-31-22 4,000 952 4,952