1) On January 2, 2013, the Expansion Company sold a 10%,$10,000 face value bond with a maturity date of December 31, 2022 (i.e., the issue matures in 10 years). The required coupon payments are to be made annually each December 31 st. The bond was sold for $8,870 (rounded to nearest whole dollar) thereby giving an effective yield to maturity of 12%. Indicate whether the following statements are "True" or "False" by circling your answers below (each answer is worth 2 points): A) T F The bond was sold at a discount of $1,200. B) T F The interest expense to be charged against income during the year ended December 31, 2013 (based on the effective interest method) amounts to $1,113 (rounded to nearest whole dollar). C) T F The net book value of the bonds payable on December 31, 2013 (the end of the first year the bond is outstanding) amounts to $8,934 (rounded to nearest whole dollar). D) TF If the bond issue remains outstanding until its maturity date of December 31,2022 , the total interest to be charged against income over the 10-year period will amount to $11,130. E) T F If the Expansion Company repurchases the bond for $9,300 after the coupon payment on December 31, 2019 (i.e., the end of the seventh year), it will recognize a gain on redemption of $220 (rounded to nearest whole dollar)