Question: Quatro Co. issues bonds dated January 1, 2017, with a par value of $890,000 The bonds' annual contract rate is 12%, and interest is paid

 Quatro Co. issues bonds dated January 1, 2017, with a par

Quatro Co. issues bonds dated January 1, 2017, with a par value of $890,000 The bonds' annual contract rate is 12%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and the bonds are sold for $935,160. 1. What is the amount of the premium on these bonds at issuance? 2 How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare an amortization table for these bonds, use the straight-line method to amortize the premium. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. (Round your intermediate calculations to the nearest dollar amount.) Unamortized Premium Carrying Value Semiannual Interest Period-End 01/01/2017 $ 45,160 $ 935,160 06/30/2017 12/31/2017 06/30/2018 12/31/2018 06/30/2019 0

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