On January 1, 2017, Ellison Co. issued eight-year bonds with…

On January 1, 2017, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6%                                     .627 Present value of 1 for 8 periods at 8%                                     .540 Present value of 1 for 16 periods at 3%                                   .623 Present value of 1 for 16 periods at 4%                                   .534 Present value of annuity for 8 periods at 6%                         6.210 Present value of annuity for 8 periods at 8%                         5.747 Present value of annuity for 16 periods at 3%                      12.561 Present value of annuity for 16 periods at 4%                      11.652 The issue price of the bonds is