Required1. a. Were the 11% bonds issued at par at a discount or at a premium? Wh

Required1. a. Were the 11% bonds issued at par at a discount or at a premium? Why?b. Is the amount of interest expense for the 11% bonds using the effective interest method of amortization higher in the first or second year of the life of the bond issue? Why?2. a. How is a gain or loss on early extinguishment of debt determined? Does the early extinguishment of the 11% bonds result in a gain or loss? Why?b. How does Brewster report the early extinguishment of the 11% bonds on the 2007 income statement?3. a. Does recording the conversion of the 10% convertible bonds into common stock under the book value method affect net income? What is the rationale for the book value method?b. Does recording the conversion of the 10% convertible bonds into common stock under the market value method affect net income? What is the rationale for the market value method?