Homework Answers
Solution
| Cash interest paid | Bond interest expense | Discount amortization | Carrying value | |
| Period End | $ 74,437,281.00 | |||
| January 1 | $ 2,700,000.00 | $ 2,977,491.00* | $ 277,491.00 | $ 74,714,772.00 |
| June 30 | $ 2,700,000.00 | $ 2,988,591.00** | $ 288,591.00 | $ 75,003,363.00 |
| December 31 .. | $ 5,966,082.00 |
*74437281 x 4%
**74714772 x 4%
Discount amortized is added to carrying value of bond not deducted.
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