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02-06-2023
Business

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Potter corporation has the following bond amortization schedule: POTTER CORPORATION Bond Discount Amortization Effective-Interest Method-annual Interest Payments Bonds Issued Interest Interest to Interest Discount Unamortized Carrying Value Periods be Paid Expense Amortization Discount of Bonds 12/31/19 (Issue date) €162,250 €1,837,750 135,230 12/31/20 €120,000 €147,020 27,020 12/31/21 1,864.770 1,893,952 120,00 149,182 29,182 106,048 Required: 1. How much is the face value of the bond? 2. How much is the market interest rate when the bonds are issued. 3. How much is the bond contract rate? 3. Why the interest expense is higher than the interest to be paid? Where does the difference from? Short Answer (10 Points) >

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