Exercise 10-4 (Algo) Straight-Line: Amortization of bond discount...
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Exercise 10-4 (Algo) Straight-Line: Amortization of bond discount LO P2 Tano Company issues bonds with a par value of $83,000 on January 1, 2021. The bonds' annual contract rate is i0\%, and interest is paid semlannualy on June 30 and December 31 . The bonds mature in three years. The annual market rate at the date of issuance is 12% and the bonds are sold for $78,922. 1. What is the amount of the discount on these bonds at issuance? 2. How much total bond interest expense will be recognized over the lfe of these bonds? 3. Prepare a straight-line amortization toble for these bonds. Complete this question by entering your answers in the tabs below. How much total bond interest expense will be recognized over the life of these bonds? Prepare a straight-line amortization table for these bonds. (Round your intermediate calculations to the nearest dollar amount.)
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