Garcia Company issues 10%, 15-year bonds with a par value of $260,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 14. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 117 V4, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What amount of bond interest expense is recorded on the first interest payment date? Required 1 Required 2 Required 3 Using the implied selling price of 117 1/4, what are the issuer's cash proceeds from issuance of these bonds? Cash proceeds What total amount of bond interest expense will be recognized over the life of these bonds? Total Bond Interest Expense Over Life of Bonds: Amount repaid: 30 payments of $ 12,000 $ Par value at maturity Total repayments Less amount borrowed (from part 1) Total bond interest expense $ 360,000 260,000 620,000 620,000 What amount of bond interest expense is recorded on the first interest payment date? Bond interest expense