Notes to the Maritime Industries Ltd. financial statements reported the following data on December 31, 2020 (the end of the fiscal year):

Maritime Industries amortizes bonds by the effective-interest method.
{Requirements}
1. Answer the following questions about Maritime's long-term liabilities:

a. What is the maturity value of the \(5 \%\) bonds?

b. What are Maritime's annual cash interest payments on the \(5 \%\) bonds?

c. What is the carrying amount of the \(5 \%\) bonds at December 31, 2020?
2. Prepare an amortization table through December 31, 2023, for the \(5 \%\) bonds. The market interest rate for these bonds was \(6 \%\). Maritime pays interest annually on December 31. How much is Maritime's interest expense on the \(5 \%\) bonds for the year ended December 31, \(2023 ?\)
3. Show how Maritime Industries would report the bonds payable and notes payable at December 31, 2023 .

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Note 6, Indebtedness Bonds payable 5% due in 2025. Less Discount...... Notes payable 8.3% payable in $50,000 annual instalments starting in Year 2024. $600,000 (25,274) $574,726 250,000