Note: Unless it is explicitly stated otherwise; (1)the discounts and premiums are amortized based on the effective rate method, and (2) all the answers should be before tax figures.
1. Bradley-Link's December 31, 2013, balance sheet included the following items:
Long-Term Liabilities ($ in millions)
9.6% convertible bonds, callable at 101 beginning in 2014,
due Dec 31, 2017 (net of unamortized discount of $2 million) $198,000,000
The 9.6% bonds were issued in 2000 at 97.5. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of the Company's no par common stock.
Prepare an amortization table for the bond issue in 2000.