Wolverines, Inc. issued $1,000,000 of 7.5%, 10-year bonds dated June 1, 2012, with semiannual interest payments on June 1 and December 1. The bonds were issued on June 1, 2012, at 103 3/4. Wolverines' year end is December 31.
1. If the company uses the straight-line method of amortization, what is the amount of interest expense for the year ended December 31, 2012?
2. What is the carrying value of the bonds on December 31, 2012?

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The Answer of Wolverines, Inc. issued $1,000,000 of 7.5%, 10-year bonds dated June 1, 2012, with semiannual interest payments on June 1 and December 1. The bonds were issued on June 1, 2012, at 103 3/4. Wolverines' year end is December 31.
1. If the company uses the straight-line method of amortization, what is the amount of interest expense for the year ended December 31, 2012?
2. What is the carrying value of the bonds on December 31, 2012?