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13. The Porky Pig Company issued $500,000 in bonds at face value on January 1, 2015. The bonds pay a contract (stated) rate of interest of 9%, interest is paid on June 30" and December 31", and the bonds mature on December 31, 2024. On January 1, 2020, Porky Pig called the bonds at 105. Porky Pig would report the following with regards to the retirement of the bonds: A $25,000 loss on bond retirement; B. $45,000 loss on bond retirement; C. $25,000 gain on bond retirement; D. no gain or loss on the bond retirement. Use the following to answer questions 14. 16: On January 1, 2020, when the market (effective) rate of interest was 10%, Tweety Bird Corporation issued 10 year bonds with a face value of $100,000. Tweety Bird received $87.500 cash for the bonds. The bonds mature on December 31, 2029, they pay a contract (stated) rate of interest of 9%, and interest is paid twice per year, on June 30" and December 31" Tweety Bird amortizes bond discounts and premiums on a straight line basis. Total interest expense Tweety Bird would report on its year end December 31, 2020 income statement is: A. $10,000 B. $8,750 C. $9,000 D. $10,250 The total amount of interest Tweety Bird would pay to its bondholders on each interest payment date is: A $5,000 B. $4,375 C. $4,500 D. $3,938 The total amount Tweety Bird would report as a bonds payable liability on its December 31, 2020 balance sheet is: A. $88,750 B. $100,000 C. $112,500 D. $87,500

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