On January 1, 2021 Apollo Company issued five-year bonds with a face value of $500,000 and a stated interest rate of 5% payable semiannually on June 30 and December 31. The prevailing rate of interest for this type of bond at date of issuance was 6%. Future Present Present value of value of value of n Future Value of 1 Present value of 1 an an an ordinary ordinary ordinary annuity annuity annuity due 550 10 10 10 10 1.27628 0.78353 5.52563 4.32948 4.54595 5% 1.33823 0.74726 5.63709 4.21236 4.46511 6% 1.28008 0.78120 11.20338 8.75206 8.97087 2% 1.34392 0.74409 11.46338 8.53020 8.78611 3% 1.62889 0.61391 12.57789 7.72173 8.10782 5% 1.79085 0.55839 13.18079 7.36009 7.80169 6% Required: 1. Determine the issue price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by Apollo on January 1, 2021. 3. Prepare the journal entry to record the payment of interest on 12/31/2022 on Apollo's books using the effective interest method of amoritzation of bond premium or discount. 4. What is the total interest expense that will be recognized over the life of the bond? 5. What is the impact of the bond on 2022 income given a 20% tax rate?