A&A Corporation sold $2.500.000 (par value). 9%. 7-year bonds on April 30, 2021 at $2,605,500 including accrued interest. The bonds were dated January 1.2021. Interest is paid semi-annually on January 1 and July 1 of each year. On August 1, 2025, A&A Corporation purchased and retired 75% of the bonds at 101 plus accrued interest. A&A Corporation uses the straight-line method for amortization of bond premiums and discounts. Required: 1. Prepare the journal entry for the issuance of the bonds on April 30, 2021. (2.5 marks) 2. Prepare the journal entry for the payment of interest on July 1. 2021. (3.5 marks) 3. Calculate the amount of the gain or loss on retirement of the bonds on August 1. 2025. [3 marks) 4. Prepare any journal entries required on August 1. 2025 for the retirement of the bonds. (5 marks) 5. What basis of accounting does A&A Corporation follow: IFRS or ASPE? How do you know? (1 mark)