A) On January 1, 2020, Y Corporation issued $100,000 face value, 10-year, 10% bonds and received $88,530 cash proceeds from the sale of the bonds. The bonds pay interest semi-annually on July 1 and January 1 each year. The market rate of interest on the date of issue was 12%. The interest expense and cash payment that would be recorded on July 1, 2020, using the effective-interest method of amortization is:

B) A company has a $100,000 face value of bonds outstanding. The unamortized discount on these bonds is $4,500. The company redeems these bonds at 97%. What is its gain or loss on the redemption?

C) Dividends in arrears on cumulative preferred shares are:

a. Recorded as a liability.

b. Recorded as a liability only after they are declared by the board of directors.

c. No reporting is required.

d. Reported as a note disclosure only after they are declared by the board of directors.