On January $1,2021,$ Daniel Corp. issued $$500,000$ of $10-$year, $8\%$ bonds for $$385,298,$ yielding a market $($discount$,$ yield$)$ rate of $12\%$ per year. Interest is paid semi$-$annually on June $30$ and December $31.$ Daniel uses the effective interest rate method to account for bonds.

Required:

a$.$

Prepare JEs to record the issue on Jan. $1,2021.$ Include the Discount on B$/$P b$.$

What interest expense is reported on I$/$S for year ending December $31,2021?$

c$.$

On December $31,2029,$ after paying the December $31$ interest $($Coupon$),$ Daniel Corp retires the bonds for $$486,153.$ Determine the gain$/$loss on bonds retirement and prepare journal entries to record the retirement. Include the unamortized bond discount.

d$.$

Ignore $($b$)$ and suppose that on December $31,2029,$ the yield decreases from $12\%$ to $10\%$ per year. What is the present value of the remaining cash flows of the bonds?