Determine the bond issue proceeds for each of the following bonds payable. All bonds are issued on January 1, 2023.

a. Belmark Corporation issued bonds in the amount of $1,250,000 that will be paid in 10 years. Interest of $18,750 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June 30, 2023. If the market rate of interest is 4%, what is the amount of the bond issue proceeds?

b. Tomtech Corporation issued bonds in the amount of $4,000,000 that will be paid in eight years. Interest of $160,000 is payable semiannually each June 30 and December 31 with the first interest payment at the end of the first period on June 30, 2023. If the market rate of interest is 6%, what is the amount of the bond issue proceeds?