Complete the requirements of CP10-6, assuming Southwest Corporation uses simplified effectiveinterest amortization shown in Chapter Supplement 10C.

Data from CP10-6:

Southwest Corporation issued bonds with the following details:

Face value: $600,000 

Interest: 9 percent per year payable each December 31

Terms: Bonds dated January 1, 2018, due five years from that date

The annual accounting period ends December 31. The bonds were issued at 104 on January 1, 2018, when the market interest rate was 8 percent. Assume the company uses straight-line amortization and adjusts for any rounding errors when recording interest expense in the final year.