Instructions: Answer all questions below. You must show and label all calculations. Part 1. On January 1, 2007, Hanson Corporation sold $5,000,000 of its 8%, 10-year bonds for $4,707,500. Interest is paid semiannually on January 1 and July 1. On January 1, 2012, Hanson purchased 1/2 of the bonds on the open market at 99 and retired them. Hanson uses the straight-line method for amortization of bond premiums and discounts. What was the amount of the gain or loss on retirement of the bonds? Prepare the journal entry needed at January 1, 2012 to record retirement of the bonds. Assume that interest and premium or discount amortization have already been recorded through this date. Prepare the journal entry needed at July 1, 2012 to record interest and premium or discount amortization. Part 2. On January 1 of the current year, Feller Corporation issued $2,500,000 of 10% bonds on a basis to yield 9%, receiving $2,612,150. Interest is payable annually on December 31 and the bonds mature in 6 years. The effective-interest method is used. What is the interest expense for the first year? What is the interest expense for the second year? Part 3. Everhart Company issues $10,000,000, 6%, 5-year bonds dated January 1, 2010 on January 1, 2010. The bonds pays interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue?