1-Auerbach Inc. issued 8% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $375 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 10%. Assuming that Auerbach issued the bonds for $328,266,900, what interest expense would it recognize in its 2018 income statement?

2-Auerbach Inc. issued 6% bonds on October 1, 2018. The bonds have a maturity date of September 30, 2028 and a face value of $500 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2019. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $432,045,000, what would the company report for its net bond liability balance at December 31, 2018, rounded up to the nearest thousand?

3-On April 1, 2018, Austere Corporation issued $350,000 of 14% bonds at 107. Each $1,000 bond was sold with 50 detachable stock warrants, each permitting the investor to purchase one share of common stock for $18. On that date, the market value of the common stock was $15 per share and the market value of each warrant was $3. Austere should record what amount of the proceeds from the bond issue as an increase in liabilities?