Which of the following statements is incorrect regarding a bond issued at par ($100,000) paying a 4,5% coupon and maturing in 7 years? O Amortization is equal to zero each period. O Interest expense is equal to interest payable each period. O The market rate of interest will equal the coupon rate on the bond. The present value of interest payments will be equal to the present value of the principal. XYZ, Inc. owns 1,500 of the 10,000 outstanding shares of the common stock of ABC Corporation. The stock was originally purchased on January 1, Year 1 for $5 per share. During the year, ABC stock paid dividends in the amount of $10,000. At December 31, Year 1, the stock is valued at $3 per share. Which of the below entries would you not expect to see on the Year 1 financial statements of XYZ, Inc.? O A credit to Investment in ABC Corporation in the amount of $3,000. O A credit to Dividend Revenue in the amount of $1,500 O A debit to Unrealized Holding Loss on Investment in ABC in the amount of $3,000 A credit to Investment in ABC Corporation in the amount of $1,500 Which of the following statements is correct for a bond issued at a premium and amortized using the effective interest method? Interest payable increases every period. O Interest expense decreases every period. Interest expense is greater than interest payable each period, The premium amount is shown as a debit entry when the bond is issued. As year, 81,000,000 bond is sued at 95. Two years later, the bond is redeemed for 103. At the time the bond is redeemed, the unamortized discount is $28.000 and the namortized bond instance costs are $15,000. Assuming that the issuer follow U.S. GAAP, which of the following journal entry accounts is correct at the time the bond is redoured? Credit to cash of $950,000 Debit discount on bonds payable of $28,000 Dobit to loss on debt extinguishment of 873,000, Debit to unamortized bond issuance costs of $15,000