Alfa issued bonds with an even value of $60 million and a nominal interest rate of 7%. Bonuses pay interest every six months on January 1 and July 1. They aired on July 1, 2019 and lasted for 15 years on that date. At the date of issue the market interest rate (yield) was 8.5%.

A.Prepare the jornal entry to record the issuance of the bonds on July 1, 2019.

B. Prepare the jornal entrance for July 1, 2020.

C. If five years (10 semesters) are missing for the bonds to expire, the company withdraws them in the amount of $62 million, calculate the profit or loss in the withdrawal of the bonds.