On January 1, 2021 Company A. 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%.

A: Calculate the issue price of the bonds. B: Prepare the journal entry to record the January 1, 2021 issuance of bonds on Company A 's books. C: Prepare the journal entry to record the payment of interest on 12/31/22 on A Company's books using the effective interest method of amortization of bond premium or discount. D: What is the total interest expense that will be recognized over the life of the bond? E: What is the impact of the bond on 2022 income given a 20% tax rate?