Alexi Co$.$ issued $$75$ million face amount of $6\%,10-$year bonds on June $1,2022.$ The bonds pay interest on an annual basis on May $31$ each year.

Required: a$.$ Assume that the market interest rates were slightly higher than $6\%$ when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount? Explain.

b$.$ Independent of your answer to a$,$ assume that the proceeds were $$74,580,000.$ Use the horizontal model $($or write the journal entry$)$ to show the effect of issuing the bonds.page $265$

c$.$ Calculate the interest expense that Alexi Co$.$ will show with respect to these bonds in its income statement for the fiscal year ended September $30,2022,$ assuming that the discount of $$420,000$ is amortized on a straight$-$line basis.