Presented below are three independent situations.

  (a) Chinook Corporation incurred the following costs in connection with the issuance of bonds: (1) printing and engraving costs, $15,000; (2) legal fees, $49,000, and (3) commissions paid to underwriter, $60,000. What amount should be reported as Unamortized Bond Issue Costs, and where should this amount be reported on the balance sheet?
  (b) McEntire Co. sold $2,500,000 of 10%, 10-year bonds at 104 on January 1, 2012. The bonds were dated January 1, 2012, and pay interest on July 1 and January 1. If McEntire uses the straight line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2012, and December 31, 2012.
  (c) Cheriel Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2012, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If Cheriel uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2012.