The Edmonton Company is issuing $50,000 face value, 10% bonds with detachable stock warrants. The value of the bonds without the warrants is $40,000 and the value of the warrants is a total of $10,000. The bonds with the warrants sold for $45,000. The journal entry to record the sale will include:

Select one:

a. A credit to Paid-in-Capital Stock Warrants for $9,000

b. A debit to Discount on Bonds Payable for $15,000

c. A debit to Discount on Bonds Payable for $10,000

d. A debit to Discount on Bonds Payable for $4,000

e. A credit to Paid-in-Capital Stock Warrants for $5,000

Case Corporation issues $100,000, 10%, five-year bonds at 104. The total interest expense over the life of the bonds is:

Select one:

a. $56,000

b. $44,000

c. $50,000

d. $54,000

e. $46,000