The following amortization and interest schedule is for the issuance of 10-year bonds by Yellow Corporation on August 1, 2017 and the subsequent interest payments and charges. The company's year end is December 31 and it prepares its financial statements yearly. Amortization Schedule Payment date Cash Payment Interest Amortization Amount amount Unamortized Balance (566,670) 601,670 8/1/2018 $35,000 $42,117 $7,117 $91,213 $608,787 8/1/2019 35,000 42,615 7,615 83,598 616,402 8/1/2020 35,000 43,148 8,148 75,450 624,550 8/1/2021 35,000 43,719 8,719 66,731 633,269 8/1/2022 35,000 44,329 9,329 57,403 642,597 8/1/2023 35,000 44,982 9.982 47,421 652,579 8/1/2024 35,000 45,681 10,681 36,740 663,260 8/1/2025 35,000 46,428 11,428 25,312 674,688 8/1/2026 35,000 47 228 12,228 13,084 686,916 8/1/2027 35.000 48,084 13,084 (0) 700,000 Instructions (a) Indicate whether the bonds were issued at a premium or a discount and explain how you can determine this fact from the schedule. (b) Indicate whether the amortization schedule is based on the straight-line method or the effective interest method and explain how you can determine which method is used. Are both amortization methods accepted for financial reporting purposes? (c) Determine the stated (coupon) interest rate and the effective (market) interest rate. Coupon rate: Effective rate: (d) Based on the schedule above, prepare the journal entry(ies) to reflect the bond transactions and accruals for 2017. (The first payment is paid August 1. 2018.) (e) Based on the schedule above, prepare the journal entry(ies) to reflect the bond transactions and accruals for 2018. Yellow Corporation does not use reversing entries. () Assume the company called (retired) the bonds at 98 on August 1, 2025. Calculate the gain or loss on this transaction