(please ONLY answer if you are able to solve the problem and get on of the answer choices provided- the answer is not none of the above)

1. The Designer Company issued 10-year bonds on January 1. The 7% bonds have a face value of $757,000 and pay interest every January 1 and July 1. The bonds were sold for $629,150 based on the market interest rate of 8%. Designer uses the effective-interest method to amortize bond discounts and premiums. What amount of interest expense should Designer record on July 1 of the first year (rounded to the nearest dollar)?

Select the correct answer.

$22,020

$26,495

$30,280

$25,166

2. Bonds Payable has a balance of $960,000 and Premium on Bonds Payable has a balance of $10,560. If the issuing corporation redeems the bonds at 102, what is the amount of gain or loss on redemption?

Select the correct answer.

$8,640 loss

$10,560 loss

$8,640 gain

$10,560 gain

3. When the market rate of interest was 12%, Newman Corporation issued $232,000, 11%, four-year bonds that pay interest semiannually. Determine the selling price of this bond issue. Use the present value tables below.

Present Value of $1 to Be Paid in the Future

Present Value of a Series of $1 Payments to Be Paid in the Future

Periods	5.0%	5.5%	6.0%	6.5%
1	$0.952381	$0.947867	$0.943396	$0.938967
2	$0.907029	$0.898452	$0.889996	$0.881659
3	$0.863838	$0.851614	$0.839619	$0.827849
4	$0.822702	$0.807217	$0.792094	$0.777323
5	$0.783526	$0.765134	$0.747258	$0.729881
6	$0.746215	$0.725246	$0.704961	$0.685334
7	$0.710681	$0.687437	$0.665057	$0.643506
8	$0.676839	$0.651599	$0.627412	$0.604231
9	$0.644609	$0.617629	$0.591898	$0.567353
10	$0.613913	$0.585431	$0.558395	$0.532726
Periods	11.0%	11.5%	12.0%	12.5%
1	$0.900901	$0.896861	$0.892857	$0.888889
2	$0.811622	$0.804360	$0.797194	$0.790123
3	$0.731191	$0.721399	$0.711780	$0.702332
4	$0.658731	$0.646994	$0.635518	$0.624295
5	$0.593451	$0.580264	$0.567427	$0.554929
6	$0.534641	$0.520416	$0.506631	$0.493270
7	$0.481658	$0.466741	$0.452349	$0.438462
8	$0.433926	$0.418602	$0.403883	$0.389744
9	$0.390925	$0.375428	$0.360610	$0.346439
10	$0.352184	$0.336706	$0.321973	$0.307946

Periods	5%	5.5%	6%	6.5%
1	$0.952381	$0.947867	$0.943396	$0.938967
2	$1.859410	$1.846320	$1.833393	$1.820626
3	$2.723248	$2.697933	$2.673012	$2.648476
4	$3.545951	$3.505150	$3.465106	$3.425799
5	$4.329477	$4.270284	$4.212364	$4.155679
6	$5.075692	$4.995530	$4.917324	$4.841014
7	$5.786373	$5.682967	$5.582381	$5.484520
8	$6.463213	$6.334566	$6.209794	$6.088751
9	$7.107822	$6.952195	$6.801692	$6.656104
10	$7.721735	$7.537626	$7.360087	$7.188830
Periods	11%	11.5%	12%	12.5%
1	$0.900901	$0.896861	$0.892857	$0.888889
2	$1.712523	$1.701221	$1.690051	$1.679012
3	$2.443715	$2.422619	$2.401831	$2.381344
4	$3.102446	$3.069614	$3.037349	$3.005639
5	$3.695897	$3.649878	$3.604776	$3.560568
6	$4.230538	$4.170294	$4.111407	$4.053839
7	$4.712196	$4.637035	$4.563757	$4.492301
8	$5.146123	$5.055637	$4.967640	$4.882045
9	$5.537048	$5.431064	$5.328250	$5.228485
10	$5.889232	$5.767771	$5.650223	$5.536431

Select the correct answer.

$224,953

$225,777

$312,829

$373,217

4. A corporation issues $95,000, 8%, 5-year bonds on January 1, for $99,280. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization of bond premium, determine the amount of bond interest expense to be recognized on July 1.

Select the correct answer.

$7,600

$4,228

$3,800

$3,372

5. Using the following table, what is the present value of $14,900 to be received in six years, if the market rate is 10% compounded annually? Round to the nearest whole number.

Periods	5%	6%	7%	10%
1	0.95238	0.94340	0.93458	0.90909
2	0.90703	0.89000	0.87344	0.82645
3	0.86384	0.83962	0.81630	0.75132
4	0.82270	0.79209	0.76290	0.68301
5	0.78353	0.74726	0.71299	0.62092
6	0.74622	0.70496	0.66634	0.56447
7	0.71068	0.66506	0.62275	0.51316
8	0.67684	0.62741	0.58201	0.46651
9	0.64461	0.59190	0.54393	0.42410
10	0.61391	0.55840	0.50835	0.38554

6. Use the following tables to calculate the present value of a $46,700 to be received six years, if the market rate is 5% compounded annually? Round to the nearest whole number.

Periods	5%	6%	7%	10%
1	0.95238	0.94340	0.93458	0.90909
2	0.90703	0.89000	0.87344	0.82645
3	0.86384	0.83962	0.81630	0.75132
4	0.82270	0.79209	0.76290	0.68301
5	0.78353	0.74726	0.71299	0.62092
6	0.74622	0.70496	0.66634	0.56447
7	0.71068	0.66506	0.62275	0.51316
8	0.67684	0.62741	0.58201	0.46651
9	0.64461	0.59190	0.54393	0.42410
10	0.61391	0.55840	0.50835	0.38554