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