Exercise 14-2 Straight-line amortization of bond discount L.O. P2 Moss issues bonds with a par value of $90,000 on January 1, 2011. The bonds annual contract rate is 8%, and interest is paid...

Exercise 14-2 Straight-line amortization of bond discount L.O. P2 Moss issues bonds with a par value of $90,000 on January 1, 2011. 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 $85,431. 1. What is the amount of the discount on these bonds at issuance? (Omit the "$" sign in your response.) Discount $ ________ 2. How much total bond interest expense will be recognized over the life of these bonds? (Omit the "$" sign in your response.) Total bond interest expense $ _________ 3. Use the straight-line method to amortize the discount for these bonds. (Make sure that the unamortized discount is adjusted to "0" and the carrying value equals to face value of the bond in the last period. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Semiannual Period-End Unamortized Discount Carrying Value (0) 1/01/2011 $_________ $ ________ (1) 6/30/2011 _________ ________ (2) 12/31/2011 __________ _________ (3) 6/30/2012 ____________ _________ (4) 12/31/2012 __________ _________ (5) 6/30/2013 _________ _________ (6) 12/31/2013 __________ ___________