Tano Company issues bonds with a par value of $180,000 on January 1 of the current...

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Tano Company issues bonds with a par value of $180,000 on January 1 of the current year. The bonds' annual contract rate is 8%, 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 $170,864. Par value Contract rate Term $180,000 896 Market rate Proceeds Payments per year Required: 3 years 10% $170,864 2 1. What is the amount of the discount on these bonds at issuance? Discount $9,136 2. How much total bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: 2 payments of $5,400 $10,800 Par value at maturity 180,000 Total repaid 180,000 Less amount borrowed (170,864) Total bond interest expense $9,136 3. Prepare a straight-line amortization table for these bonds. Amount of semi-annual discount amortization Semiannual Unamortized Period-End Discount Carrying Value (0) 1/1/2024 $170,864 (1) 6/30/2024 (2) 12/31/2024 (3) 6/30/2025 (4) 12/31/2025 (5) 6/30/2026 (6) 12/31/2026 Tano Company issues bonds with a par value of $180,000 on January 1 of the current year. The bonds' annual contract rate is 8%, 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 $170,864. Par value Contract rate Term $180,000 896 Market rate Proceeds Payments per year Required: 3 years 10% $170,864 2 1. What is the amount of the discount on these bonds at issuance? Discount $9,136 2. How much total bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: 2 payments of $5,400 $10,800 Par value at maturity 180,000 Total repaid 180,000 Less amount borrowed (170,864) Total bond interest expense $9,136 3. Prepare a straight-line amortization table for these bonds. Amount of semi-annual discount amortization Semiannual Unamortized Period-End Discount Carrying Value (0) 1/1/2024 $170,864 (1) 6/30/2024 (2) 12/31/2024 (3) 6/30/2025 (4) 12/31/2025 (5) 6/30/2026 (6) 12/31/2026