Electrolux Corporation manufactures electrical test equipment. The company's board of directors authorized a bond issue on January 1 of this year with the following terms: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

Face (par) value: $800,000

Coupon rate: 8 percent payable each December 31

Maturity date: December 31, end of Year 5

Annual market interest rate at issuance: 12 percent

a. Compute the bond issue price. (Round your final answers to nearest whole dollar amount.)

b. Assume that the company used the straight-line amortization method. Compute the following for Year 1 through Year 5:

1. Cash payment for bond interest

2. Amortization of bond discount or premium

3. Bond interest expense

c. Assume that the company used the effective-interest amortization method. Compute the following for Year 1 through Year 5: (Round your final answers to nearest whole dollar amount.)

1. Cash payment

2. Interest expense

3. Amortization of discount

4. net liability