[cmcmahon]

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow. · Case A—The bonds are issued at 100. · Case B—The bonds are issued at 96. · Case C—The bonds are issued at 105. Southlake uses the straight-line method of amortization. Instructions:

Complete the following table:
	Case A	Case B	Case C
Cash inflow on the issuance date	_______	_______	_______
Total cash outflow through maturity	_______	_______	_______
Total borrowing cost over the life of the bond issue	_______	_______	_______
Interest expense for the year ended December 31, 20X1	_______	_______	_______
Amortization for the year ended December 31, 20X1	_______	_______	_______
Unamortized premium as of December 31, 20X1	_______	_______	_______
Unamortized discount as of December 31, 20X1	_______	_______	_______
Bond carrying value as of December 31, 20X1	_______	_______	_______

[ma0641]

You spent enough time to copy this, you could have answered half of it. PS. We don't do your homework. What are your answers?