1. A company issues $3,000,000 face value of five-year bonds dated 1 January 2015 when the market interest rate on bonds of comparable risk and terms is 4%. The bonds pay 3% interest annually on 31 December. Based on the effective interest rate method, what is the carrying amount of the bonds on 31 December 2015?
2. Lesp Industries issues five-year bonds dated 1 January 2015 with a face value of $3,000, 000 and 3% coupon rate paid annually on 31 December. The market interest rate on bonds of comparable risk and term is 4%. The sales proceeds of the bonds are $1,910,964. Under the effective interest rate method, what is the interest expense in 2017?
3. A company enters into a finance lease agreement to acquire the use of an asset for three years with lease payments of 9,000,000 starting next year. The leased asset has a fair market value of 49,000,000 and the present value of the lease payments is 57,250,188. Based on this information, calculate the value of the lease payable reported on the company's balance sheet?
4. Comte Industries issues $5,000,000 worth of three-year bonds dated 1 January 2015. The bonds pay interest of 5% annually on 31 December. The market interest rate on bonds of comparable risk and term is 5%. The sales proceeds of the bonds are $5,040,849. Under the straight-line method, what is the interest expense in year one?