$1.$How does the carrying value of a bond payable get affected by amortization?

Group of answer choices

a$.$Decrease if Bonds are issued at a discount and Decrease if Bonds are issued at a premium.

b$.$Increase if Bonds are issued at a discount and Increase if Bonds are issued at a premium.

c$.$Increase if Bonds are issued at a discount and Decrease if Bonds are issued at a premium.

d$.$Decrease if Bonds are issued at a discount and Increase if Bonds are issued at a premium.

$2.$ On July $1,2018,$ Shebchuk Company issued $$300,000$ of $9$ percent, ten$-$year bonds when market rate of interest was $8\%.$ The bonds mature in ten years and pay interest on June $30$ and December $31.$ Shebchuk Company's fiscal year ends on December $31$ and the company uses effective interest method of amortization. Determine the issue price of the bonds $($requires use of present value tables$).$

a$.$$$319,112.$

b$.$$$319,701.$

c$.$$$321,071.$

d$.$$$320,386.$