Opus, Incorporated, owns 80 percent of Bloom Company. On

Opus, Incorporated, owns 80 percent of Bloom Company. On January 1, 2017. Opus acquires half of Bloom’s $700,000 outstanding bonds. Opus paid $390.226 for this investment, indicating an 8 percent effective yield.

The bonds of Bloom Company had been sold on the open market on January 1, 2014, at a 12 percent effective rate. The bonds pay a cash interest rate of 10 percent every January 1and are scheduled to come due on January 1, 2025. Bloom issued this debt originally on January , 2014 for $616,872.

Assume Opus Incorporated uses the equity method to account internally for its investment in Bloom Company

Required:

a.

Complete the amortization schedule below for Opus Incorporated’s share of the bonds payable for Bloom Company using the straight-line method for amortization of bond premiums or discounts (Round your answers to 2 decimal points.)

b. Complete the amortization schedule below for Opus Incorporated’s Investment in the bonds of Bloom Company using the straight-line method for amortization of bond premiums or discounts. (Round your answers to 2 decimal points.)