On January 1, 2012, Inc. sold 12% bonds having a maturity of $800,000 that provides the bondholders with a 10% yield. The bonds are dated January 1, 2012 and mature on January 1, 2017 with interest payable semi-annually on January 1 and July 1 of each year. The company follows IFRS and uses the effective interest method. Round calculations to the nearest dollar.

Assume that all the issued bonds are repurchased on July 1st, 2014 for $837,000. Prepare the journal entry to record this transaction

If Inc. prepares financial statements in accordance with ASPE, can Inc. choose a different method of amortizing any premium or discount on its bonds payable? Explain your answer