Question $1(10$ marks$)$

On July $1,2022,$ Forest Corp. issued $$1,000,000$ of $6\%($payable each June $30$ and December $31),5-$year December $2023$ at an effective rate of $3\%.$ Because the company had available cash, half of the bonds were purchased in the market and retired on January $1,2024$ at $103.$ Show your calculations $($calculator inputs$).$

Required:

a$)$ Calculate the issue price of the bonds by Forest Corp. on July $1,2022.$

b$)$ Calculate the book $($carrying value$)$ of the bonds on December $31,2023.$

$\backslash$table$[[$Period$,\backslash$table$[[$Interest$],[$Expense$]],\backslash$table$[[$Interest$],[$Paid$]],$Amortization,$\backslash$table$[[$Ending$],[$Balance$]]],[,,,,],[,,,,],[,,,,]]$

c$)$ Besides having some available cash, explain one reason why Forest might want to retire their bonds.

d$)$ Give the entry by Forest Corp. to record the retirement of the bonds on January $1,2024.$

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