1. At the beginning of 2021, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 8% of net sales. Net sales made under warranty in 2021 were $218 million. Fifteen percent of the units sold were returned in 2021 and repaired or replaced at a cost of $4.50 million. The amount of warranty expense on Angel's 2021 income statement is:

2. On January 1, 2021, Legion Company sold $230,000 of 8% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $201,337, priced to yield 10%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2021, in the amount of: