On January 1 of Year 1, Alpha Corporation issued $400,000 of 8% (cash payable semiannually on June 30 and December 31 ), three-year bonds to yield 10%. Bond issuance costs incurred by Alpha were $3,000. Required a. Compute the selling price of the bonds, net of the bond issuance costs. b. Prepare an amortization schedule over the life of the bonds using the effective interest method. Hint: First calculate the interest rate that equates the net carrying value of the bonds at issuance with the future cash flows of the bond. c. Prepare entries on January 1 of Year 1 to record bond issuance, and on June 30 and December 31 of Year 1 to record interest payments. d. Indicate how the company would report the bond transactions in the balance sheet and income statement for the year ended December 31 of Year 1