On january 1, willis company issued $600,000 of 10-year, 8% bonds for $565,500. the bonds pay interest annually. the bond issuer uses the straight-line method of amortization. what is the amount of interest expense for the first year?

The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?