Problem 12-2 ABC, Inc. issued $500,000, 7%, 25-year bonds on January 1, 2019, at 99. Interest is payable annually on December 31. ABC, Inc. uses straight line amortization of bond discount or premium. Part A: Issuance a. Calculate the amount of the discount. b. Calculate the amount of cash received. c. Prepare the journal entry to record the issuance of the bond. Part B: Calculate the cost of borrowing. a. Calculate the amount of a single interest payment. b. Calculate the total amount of interest paid over the life of the bond c. Calculate the total amount paid out over the life of the bond d. Calculate the cost of borrowing