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On January 1, 2019, French Company issued $88,000 of five-year, 8% bonds when the market interest rate was 12%. The issue price of the bonds was $71,000. French uses the effective - interest method of amortization for bond discount. Semiannual interest payments are made on June 30 and December 31 of each year. How much interest expense will be recorded when the first interest payment is made? (Round your answer to the nearest dollar number.) O A. $4.260 OB. $2.840 O C. $3,520 OD. $5,280 On July 1, 2019, Montana Company has bonds with balances as shown below. Bonds Payable 72,000 Discount on Bonds Payable 4,2001 If the company retires the bonds for $75,150, what will be the effect on the income statement? A. gain on retirement of $7,350 B. loss on retirement of $7,350 O C. sales revenue of $67,800 OD. no effect on net income Land Corporation reported the following: Common Stock, $5.00 par, 204,000 shares authorized, 171,000 shares issued Paid in Capital in Excess of Par-Common Retained Earnings Total Stockholders' Equity $855,000 206,000 238.000 $1,299,000 Which of the following is included in the entry to record the corporation's purchase of 40,000 shares of its common stock for $12.50 per share? O A. Paid - In Capital from Treasury Stock Transactions is credited for $145,000 OB. Retained Earnings is debited for $500,000 O C. Treasury Stock-Common is debited for $500,000. OD. Common Stock-$5.00 Par Value is credited for $200,000