1) At the beginning of 2017, Pluto Corporation issued 10% bonds with a face value of $6,000,000. These bonds mature in the five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $5,558,400 to yield 12%. Pluto uses a calendar-year reporting period. Using the effective-interest method of amortization, what amount of interest expense should be reported for 2017? [Round your answer to the nearest dollar.]

2) The 10% bonds payable of Zeus Company had a net carrying amount of $2,850,000 on December 31, 2017. The bonds, which had a face value of $3,000,000, were issued at a discount to yield 12%. The amortization of the bond discount was recorded under the effective-interest method. Interest was paid on January 1 and July 1 of each year. On July 2, 2018, several years before their maturity, Zeus retired the bonds at 102. The interest payment on July 1, 2018 was made as scheduled. What is the loss that Zeus should record on the early retirement of the bonds on July 2, 2018? Ignore taxes.

3) Prepare journal entries to record the following retirement. (Show computations and round to the nearest dollar.)

The December 31, 2018 balance sheet of Fox Co. included the following items:

7.5% bonds payable due December 31, 2026 $3,000,000

Unamortized discount on bonds payable 120,000

The bonds were issued on December 31, 2016 at 95, with interest payable on June 30 and December 31. [Use straight-line amortization.] On April 1, 2019, Fox retired $600,000 of these bonds at 101 plus accrued interest.