Nero Solutions Co$.$ issued an $$800,000,6\%,$ three$-$year bond for $$806,000.$ The bond pays interest annually, at each year$-$end. At maturity, the bond can be repaid in cash or converted to $60,000$ common shares at the investor$$s option. The market interest rate for bonds of similar term and risk, but that are not convertible, is in the range of $7\%.$

$1.$ Calculate the portion of the bond to be recorded as a liability.

$2.$ Provide the entry to record issuance of the bond.

$3.$ Provide the entries to record interest expense and the annual cash payment each year over the bond$$s three$-$year life.

$4.$ Provide the entry to record the maturity of the bond, assuming that shares were issued.

$5.$ Provide the entry to record the maturity of the bond, assuming that cash is paid