4: Long-term Liabilities (19.5 Marks) Micros Corporation issued $600,000 face value debentures on April 1, 2016. The bonds mature on March 31, 2026. The annual stated (coupon) rate is 5%, and interest must be paid annually on March 31. The annual market rate was 7% at the time of issuance. Micros Corporation's fiscal year ends on December 31. Micros Corporation uses the effective interest method, in accordance with IFRS requirements. Required (Round all numbers to the nearest dollar) 1. Calculate the cash proceeds from the bond issuance on April 1, 2016. a. 304,980 b. 515,688 c. 600,000 d. 630,000 2. Calculate the discount or premium on bond payable from the bond issuance on April 1, 2016. a. 84,312 b. 0 c. (30,000) (premium) d. 295,020 3. Calculate the journal entry amounts for interest expense and interest payable (respectively) on December 31, 2016. a. 27,074 & 30,000 b. 22,500 & 27,074 c. 27,074 & 22,500 d. 30,000 & 27,074 4. Calculate the journal entry amounts for interest expense and interest payable (respectively) on March 31, 2017. Assume the bond was issued for $515,688 on April 1st, 2016. a. 9,025 & 22,500 b. 22,500 & 30,000 c. 22,500 & 9,025 d. 30,000 & 22,500 5. Assume that Micros Corporation redeems 60% of the bonds for cash at 105% immediately after paying the interest on March 31, 2017. Calculate the loss on redemption of bond. Assume the bond was issued for $515,688 on April 1st, 2016. a. 0 b. 64,928 c. 46,928 d. 78,214 6. What will be carrying amount of the bond be at, as at March 31th 2017? a. 208,714 b. 240,000 c. 360,000 d. 362,286 7. How much cash outflow will be reported in the statement of Cash Flow from the redemption that occurred on March 31th, 2017 a. 64,928 b. 360,000 c. 332,000 d. 378,000