Answer:
1.
$7,250
2.
$284,562.5
3.
Dr. Bond Payable $290,000
Dr. Loss on Retirement $18,487.5
Cr. Bond Discount $5,437.5
Cr. Cash $303,050
Explanation:
1.
Bond is issued on the discount when it is issued below the face value.
Discount value = Face value - Issuance value = $290,000 - $282,750 = $7,250
2.
Carrying value of the bond is the net of face value of the bond and un-amortised bond discount.
Carrying value = 290,000 - ($7,250 x (20-5) / 20) = $284,562.5
3.
Bond Discount = $7,250 x 15/20 = $5,437.5
