Please explain step by step for each question. Thank you.

1) On january 2016, Gomez Co.issued its 10% bonds in the face amount of $6,000,000, which mature on January 1, 2026. The bonds were issued for $6,810,000 to yield 8%, resulting in bond premium of $810,000. Gomez uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. The bond premium reported on Gomezs balance sheet dated December 31, 2016, should be

a.$810,000.

b. $729,000.

c.$754,800.

d.$609,000.

2) On January 2, 2016, a calendar-year corporation sold 8% bonds with a face value of $3,000,000. These bonds mature in five years, and interest is paid annually on December 31. The bonds were sold for $2,768,000 to yield 10%. Using the effective interest method of computing interest, how much should be charged to interest expense in2016?

a.$300,000.

b.$240,000.

c.$276,800.

d.$221,440.