On April $1,2024,$ Wooden Ships Company issued $5$ year, $10\%$ bonds that have a par

value of $$14,000.$ For bonds of similar risk and maturity, the market yield was $6\%$ on the

date of issue. Interest is paid semiannually on March $31$ and September $30.$ So$,$ the bonds

were issued $($i$.$e$.,$ sold$)$ at $117\mathrm{.}06.$ On $\frac{12}{31}\frac{?}{24},$ the market value of the bonds was $103,$

and on $\frac{8}{1}\frac{?}{26},$ it was $80.$ The bonds are callable beginning $\frac{12}{31}\frac{?}{25}$ at $101\mathrm{.}4.$

a$.$ What is total interest expense related to the bonds for $2025?$

$$

b$.$ Provide the joumal entry that Wooden Ships should record on $\frac{3}{31}\frac{?}{25}$ when it pays

semiannual interest.

c$.$ If the bonds were called on October $1,2026,$ what is the gain or loss that Wooden

Ships must report? Provide a dollar amount and circle gain or loss.