Tide Management Inc. issued 8-percent bonds with a maturity value of $6,000,000 for $5,662,980 on October 1, 2014, when the market rate of interest was 9 percent. These bonds mature on October 1, 2022, and are callable at 101.00. Tide Management Inc. pays interest each April 1 and October 1. On October 1, 2015, when the bonds' market price is 104.00,

Tide Management Inc. retires the bonds in the most economical way available. Required Record the payment of interest and the amortization of the bond discount at October 1, 2015; also record the retirement of the bonds on that date. Tide Management Inc. uses the effective-interest method to amortize the bond discount.