1. Assuming that Peach Tree Software sold bonds with a face value of $100,000 for $104,000. Was the market interest rate equal to, less than or greater than the bonds contractual interest rate? Explain. Include in your answer whether these bonds are sold at premium, discount or face value.

2. Assuming that Peach Tree Software sold bonds with a face value of $100,000 for $96,000. Was the market interest rate equal to, less than or greater than the bonds contractual interest rate? Explain.

Include in your answer whether these bonds are sold at premium, discount or face value.

3. If the bond payable account has a balance of $700,000 and the bonds payable has a net carrying value of $664,000, what is the amount of bond discount or bond premium? Was this bond originally sold at a premium, discount or face value?