1 question 2 parts

Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Decrease in Balance Payment Cash 1 2 300,000 300,000 300,000 300,000 345,639 347, 464 349, 363 Outstanding Balance 8,640,967 8,686,606 8,734,070 8,783, 433 45,639 47, 464 49, 363 What is the book value of the bonds as of December 31, 2022? $8,783,433 O $8,686,606. $8,834,770. O $8,734,070 When issuing bonds or notes, Papaya Company incurs costs, such as legal and accounting fees, printing costs, and registration and underwriting fees. Papaya records these costs by combining them with any discount (or subtracting them from any premium) on the debt. Which of the following is an accurate statement regarding the company's policy? The policy is inappropriate because these costs should be expensed in the period the debt is issued. This approach has the appeal of reflecting the effect that debt issue costs have on the effective interest rate because deducting debt issue costs lowers the carrying amount of the debt, which effectively increases the interest rate on that debt. This approach is conceptually correct because the net amount borrowed is higher, but interest payments are the same, so the effective rate of borrowing is lower. The policy is inappropriate because these costs should be recorded in a Debt Issue Costs account and amortized over the term to maturity of the debt