If $403,000 of 10% bonds are issued at 98, the amount of cash received from the sale is

a. $394,940

b. $362,700

c. $403,000

d. $443,000

Franklin Corporation issues $87,000, 10%, 5-year bonds on January 1, for $90,915. Interest is paid semiannually on January 1 and July 1. If Franklin Corporation uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is

a. $3,872

b. $6,960

c. $3,959

d. $3,480