Dynamic Games Incorporated issued $$524,000$ of five$-$year, $5$ percent bonds on January $1,$ Year $2,$ at $103.$ Interest is payable in cash annually on December $31.$ The straight$-$line method is used for amortization.

Required:

a$.$ Determine the carrying value $($face value less discount or plus premium$)$ of the bond liability as of December $31,$ Year $2.$

b$.$ Determine the amount of interest expense reported on the Year $2$ income statement.

$\backslash$table$[[$a$.$ Carrying value,$],[$b$.$ Interest expense,$]]$

Prey

$(8)$ of $9$

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