Brief Exercise 10.6 Recording Bonds Issued at a Premium (LO10-6) Purple & Orange, Inc., sold $800,000 of bonds on an interest payment date at 102. Assume the bonds will be retired in 10 years and interest is paid annually. The bonds carry a stated interest rate of 6.5 percent. a. Calculate the amount of cash that will be received and paid by Purple & Orange in the first full year. b. Calculate the amount of interest expense that will be recognized in that year. a. Cash received Cash paid b. Interest expense