QUESTION 6 On January 1, 20X4, Golf Emporium Inc. (GEl) issued (sold) $2,000,000 of seven-year bonds that pay 5% interest semi- annually on June 30 and December 31. The market rate of interest at time of issuance was 4%. Transaction costs directly related to the issuance of these bonds totaled $20,000. GEl classified this liability at amortized cost. What amount of interest expense pertaining to the bonds should GEl report on its statement of comprehensive income for the six-month period ended June 30, 20X4? O a. $50,000 O b. $44,122 O c. $42,021 Od. $43,706 QUESTION 7 Amira Inc. issued $50,000,000, 5.0%, six-year bonds on January 1, 20X6. The bonds pay interest semi-annually on June 30 and December 31 each year. The market rate of interest for similar bonds at time of issuance was 6.0%. Amira Inc. paid $65,000 in transaction costs directly attributable to the issuance of the bonds. Amira classifies the bonds at amortized cost. On recognition date, what amount will Amira Inc. initially measure the bond liability at? Q a $47,446,499 Ob. $47,511,499 0 . $49,935,000 O d. $47,576,499