Vicki Company issued $$1$ million face amount of $8\%,20-$year bonds on April $1,2022.$ The bonds pay interest on an annual basis on December $31$ each year.

Required:

Q$1$a$.$ Assume that market interest rates were slightly lower than $8\%$ when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount?

Q$1$b$.$ Independent of your answer to Q$1$a$,$ assume that the proceeds were $$1,030,000.$ Calculate the amount of discount or premium on bonds payable that Vicki Company would record upon the issuance of the bonds on April $1,2022.$

Q$1$c$.$Calculate the interest expense that Vicki Company will show with respect to these bonds in its income statement for the year ended December $31,2022,$ assuming that the discount or premium calculated in Q$1$b is amortized on a straight$-$line basis