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On June 1, 2013, Everly Bottle Company sold $2,000,000 in long-term bonds for $1,754,200. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. (Hint): Review chapter 9 , page 299 and subsequent pages in your textbook) Instructions A. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization each May 31. Include only the first four years. Make sure all columns and rows are properly labeled. (Round to the nearest dollar.) B. The sales price of $1,754,200 was determined from present value tables. Specifically, explain how one would determine the price using present value tables. Indicate the effect of each of the following transactions on total stockholders' equity by placing an " X " in the appropriate column. Answer each of the following questions. 1. A plant asset purchased for $400,000 has an estimated life of 10 years and a residual value of $20,000. Depreciation for the second year of use, determined by the declining-balance method at twice the straight-line rate is 2. A plant asset with a cost of $320,000, market value of $250,000 and accumulated depreciation of $90,000, has gain/loss recognized on the disposal (indicate by "G" or "L") is $ 3. A plant asset with a cost of $270,000, an estimated life of 5 years, and a residual value of $45,000 is depreciated by the straight-line method. This asset is sold for $190,000 at the end of the second year of use. The gain or loss on the disposal (indicate by "G" or "L") is $

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