Use the following information for the next four questions: K…
Use the following information for the next four questions: K&E’s Greenhouse, Inc. issued $2,800,000, 5% 10-year bonds on January 1, 2025. The bonds pay interest semiannually on June 30 and January 1 and are issued to yield 8% (effective rate). At the date of issuance, the carrying value of the bonds was calculated to be $2,229,215 (i.e., the present value of future cash flows). K&E Greenhouse, Inc. uses the effective-interest method to amortize any discount or premium on bonds payable.