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On January $1,2022,$ Drennen, Incorporated, issued $$6$ million face amount of $10-$year, $14\%$ stated rate bonds when market interest rates were $12\%.$ The bonds pay semiannual interest each June $30$ and December $31$ and mature on December $31,2031.$ Table $6-4,$ Table $6-5$

Note: Use appropriate factor from the table provided.

Required:

a$.$ Calculate the proceeds $($issue price$)$ of Drennen Incorporated's bonds on January $1,2022,$ assuming that the bonds were sold to provide a market rate of return to the investor.

Note: Enter your answers in whole dollars, not in millions.

$2.$ Assume instead that the proceeds were $$5,780,000.$ Use the horizontal model to record the payment of semiannual interest and the related discount amortization on June $30,2022,$ assuming that the discount of $$220,000$ is amortized on a straight$-$line basis. Indicate the financial statement effect.

Note: Enter your answers in whole dollars, not in millions. Enter decreases with a minus sign to indicate a negative financial statement effect.

$3.$Assume instead that the proceeds were $$5,780,000.$ Record the journal entry to show the payment of semiannual interest and the related discount amortization on June $30,2022,$ assuming that the discount of $$220,000$ is amortized on a straight$-$line basis.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$4.$ If the discount in part b were amortized using the compound interest method, would interest expense for the year ended December $31,2022,$ be more than, less than, or equal to the interest expense reported using the straight$-$line method of discount amortization?

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