7) On January 1, 2015, Red Company issued an 8% callable bond which has a par value of $200,000 for $185,000. The bond is callable at 106 any time after January 1, 2020. The entire bond was called back on January 1, 2021 when theunamortized discount had a balance of $4,500. Compute the amount of the gain or loss when the bond was retired on January 1, 2021. 8) A company uses the effective interest method of amortization for a bond issued as a premium. In the early years of the life of the bond, the interest expense will be less than the interest paid. In the later years of the bond's life, the interest expense will be greater than the interest paid. (True False) 1 9) A bond was issued on April 1, 2021. The interest dates of the bond are February 1 and August 1. The number of total months of interest expense incurred for the year ended December 31, 2021 should be? 10) The condition for bond issued at a premium is that the market rate is greater than the yield. (True False) 7) On January 1, 2015, Red Company issued an 8% callable bond which has a par value of $200,000 for $185,000. The bond is callable at 106 any time after January 1, 2020. The entire bond was called back on January 1, 2021 when theunamortized discount had a balance of $4,500. Compute the amount of the gain or loss when the bond was retired on January 1, 2021. 8) A company uses the effective interest method of amortization for a bond issued as a premium. In the early years of the life of the bond, the interest expense will be less than the interest paid. In the later years of the bond's life, the interest expense will be greater than the interest paid. (True False) 1 9) A bond was issued on April 1, 2021. The interest dates of the bond are February 1 and August 1. The number of total months of interest expense incurred for the year ended December 31, 2021 should be? 10) The condition for bond issued at a premium is that the market rate is greater than the yield. (True False)