Twixt Corp. issued $$5,170,000$ of convertible bonds on $1$ January for $$4,955,000$ cash. The bond had the following terms:

Bonds mature in five years' time.

Annual interest, $7\%,$ is paid each $31$ December.

Bonds are convertible to $517,000$ common shares at maturity or can be repaid in cash. This choice is up to Twixt Corp.

Current market interest rates are $8\%.$

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

Assign a value to the liability and the equity portions of the bond. $($Round time value factor to $5$ decimal places and final answers

to the nearest dollar amount.$)$Twixt Corp. issued $$5,170,000$ of convertible bonds on $1$ January for $$4,955,000$ cash. The bond had the following terms:

Bonds mature in five years$$ time.

Annual interest, $7\%,$ is paid each $31$ December.

Bonds are convertible to $517,000$ common shares at maturity or can be repaid in cash. This choice is up to Twixt Corp.

Current market interest rates are $8\%.$

$($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ Assign a value to the liability and the equity portions of the bond. $($Round time value factor to $5$ decimal places and final answers to the nearest dollar amount.$)$

$2.$ Provide the journal entry to record issuance of the bond. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round time value factor to $5$ decimal places. Round your final answers to the nearest dollar amount.$)$

$3.$ Provide a schedule to show interest expense and amortization of the liability over the life of the bond. $($Round time value factor to $5$ decimal places. Round your final answers to the nearest dollar amount. Leave no cell blank. Be certain to enter $"0"$ wherever required.$)$