Ellis issues 8.5%, five-year bonds dated January 1, 2016, with a $420,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $464,786. The annual market rate is 6% on the issue date. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)

1. Compute the total bond interest expense over the bonds' life Total bond interest expense over life of bonds Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense 2. Prepare an effective interest amortization table for the bonds' life. (Enter all amounts as positive values.) Unamortized Carrying Value Semiannual Period- Cash Interest Bond Interest Premium Paid End Amortization Premium Expense 01/01/2016 06/30/2016 12/31/2016 06/30/2017 12/31/2017 06/30/2018 12/31/2018 06/30/2019 12/31/2019 06/30/2020 12/31/2020 Total