LO 2, 6 P9-59B. (Learning Objectives 2,6:Analyze a company's long-term debt; report long-term debt on the balance sheet [effective-interest method) The notes to the Alliance Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): Note 6. Indebtedness $2,000,000 Bonds payable, 3% due December 31, Year 8 Less: Discount Notes payable, 7%, payable in $50,000 ... annual installments starting in Year 300,000 Alliance amortizes bond discounts using the effective-interest method and pays all interest amounts at December 31 Requirements 1. Assume the market interest rate is 7% on January 1 of year 1, the date the bonds are issued. a. Using the PV function in Excel, what is the issue price of the bonds? b. What is the maturity value of the bonds? c. What is Alliance's annual cash interest payment on the bonds? d. What is the carrying amount of the bonds at December 31, Year 1? 2. Prepare an amortization table through the maturity date for the bonds using Excel. How much is Alliance's interest expense on the bonds for the year ended December 31, Year 4? 3. Show how Alliance would report these bonds and notes payable at December 31, Year 4