Item3 1.42 points Return to questionItem 3 E8-8 Constructive Retirement at Beginning of Year (Effective Interest Method) LO 8-2 Suspect Company issued $1,080,000 of 9 percent first mortgage bonds on January 1, 20X1, at 102. The bonds mature in 20 years and pay interest semiannually on January 1 and July 1. Prime Corporation purchased $720,000 of Suspects bonds from the original purchaser on January 1, 20X5, for $716,200. Prime owns 70 percent of Suspects voting common stock.