Thanos Corp. issued $500,000 of long-term bonds on june 1,

Year 4. The bonds mature in 10 years and have a stated

coupon rate of 4%. The market rate was 5%. The bonds pay

interest semi-annually on June 1 and December 1, and year-

end is December 31. The bonds are to be accpunted for using

the effective interest method. On June 1, Year 6, after paying

interest, Thanos decided to retire 20% of the bonds. At that

time, the bonds were selling at 98.

a. Calculate the issue price of the bond.

b. Prepare all journal entries related to the bonds for Year 4

c. Calculate the gain or loss on the partial retirement of the

bonds on June 1, Year 6, and prepare the journal entry to

record the partial retirement.