On

January 1, Topeka Outfitters

issued $175,000 of 6%, 3-

year bonds when the market rate of interest was

10%. The bonds pay interest semiannually on June 30 and December 31.

A.

How much are the proceeds that Topeka

Outfitters?

will receive on the issue date of the

bonds?

B.

Prepare amortization table for the bond issue.

C.

If the bonds are retired at the end of Year 2 at 104.5% of the maturity value, how much gain

or loss on retirement will be reported?