On January 1, 2020, Tiamund Corp. sold at 103, 100 of its $1,000 face value, five-year, 9% non-convertible, retractable bonds. The retraction feature allows the holder to redeem the bonds at an amount equal to three times net income, to a maximum of $1,200 per bond. Tiamund has net income of $250, $350, and $450 for the fiscal years ended December 31, 2020, 2021, and 2022, respectively. Tiamund Corp. prepares its financial statements in accordance with ASPE. 

Instructions 

a. Prepare the entry to record the issuance of the bonds. 

b. Using straight-line amortization, how much would the bonds be carried at on the statement of financial position for the 2020, 2021, and 2022 year ends?