On January $1,2024,$ White Water issues $$600,000$ of $7\%$ bonds, due in $10$ years, with interest payable annually on December $31$ each year.

Assuming the market interest rate on the issue date is $8\%,$ the bonds will issue at $$559,740.$

$1.$ Complete the first three rows of an amortization schedule. $($Hint: Use Illustration $96,$ except the dates for the first three rows will be $1/1/2024,12/31/2024,$ and $12/31/2025$ since interest is payable annually rather than semiannually. Interest expense for the period ended December $31,2024,$ is calculated as the carrying value of $$559,740$ times the market rate of $8\%.)$