Cinefilm (CF) is an entertainment and media company established in 1982 by two brothers in Toronto. CF has grown into a large, nationally recognized company that is publicly traded on the TSX with the symbol CF. CF has three operating segments: movie theatres, streaming content, and advertising. The CFO and accounting department are currently analyzing the following issues in preparing the year-end financial statements. a) On January 1, 2021, the company issued a $1-million, five-year bond with a coupon rate of 5% when the market rate was 6%. The bond pays interest annually and has no conversion features. The bond was issued for $957,876. On December 31, 2023, the company reacquired the bond for $950,000. The bond discount is amortized with the effective interest method.