Cheery company follows IFRS for its financial reporting. on Jan 1, 2015 Cheery issued $ 250 million of 10-year convertible pay interest at 5% annually. Invenstors pay $ 250 million for the notes even though the company's credit rik at the time implies a 10% interest rate for traditional debt of similar duration. When the cash flows associated with the debt are discouted at 10%, the resutling value is $ 175 million.

1- how much interest expense will be recordes on Cheery's Dec 31, 2015 income statement? ( is it $ 25 million, $ 12.5 million, $ 17.5 million, or $ 8.75 million?) 2-how much cash will Cheery pay for interest during 2015? ( is it $ 25 million, $ 12.5 million, $ 17.5 million, or $ 8.75 million?) 3-when Cheery records interest expense on Dec 31, 2015 the entry will include a ( Dr to Interest Exp for $25 million, Cr to Covnertible notes payables for $ 12.5 million, Dr to convertible notes payables for $ 17.5 million)