Mini-Exercise 7-5 (Algo) Bonds payable-Issuance and amortization concepts LO 7-8 Vicki Company issued $1 million face amount of 8.25%, 20-year bonds on April 1, 2022. The bonds pay interest on an annual basis on December 31 each year. Required: a. Assume that market interest rates were slightly lower than 8.25% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount? b. Independent of your answer to a. assume that the proceeds were $1,040,000. Calculate the amount of discount or premium on bonds payable that Vicki Company would record upon the issuance of the bonds on April 1, 2022 c. Calculate the interest expense that Vicki Company will show with respect to these bonds in its income statement for the year ended December 31, 2022, assuming that the discount or premium calculated in b is amortized on a straight-line basis. Complete this question by entering your answers in the tabs below. Req A Req B and C b. Independent of your answer to a, assume that the proceeds were $1,040,000. Calculate the amount of discount or premium on bonds payable that Vicki Company would record upon the issuance of the bonds on April 1, 2022. c. Calculate the interest expense that Vicki Company will show with respect to these bonds in its income statement for the year ended December 31, 2022, assuming that the discount or premium calculated in b is amortized on a straight-line basis. Note: Enter your answers in whole dollars, not in millions. b. Premium on bonds payable C. Interest expense S 40,000 < Req A Req B and C Show less A