Homework Answers
Solution
| Cash Paid | Interest expense | Premium amortized | Carrying Amount | |
| 01-01-2018 | $ 290,844 | |||
| 06/30/2018 | $ 16,200 | $ 14,542 | $ 1,658 | $ 289,186 |
| 12/31/2018 | $ 16,200 | $ 14,459 | $ 1,741 | $ 287,446 |
*290844 x 5%
**289146 x 5%
Premium amortized is the difference between cash interest and interest expense.
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