1. On January 1, 2016. Bustle Company purchased as a long-term investment $5,000,000 face value of Rezin Company 8% bonds for $4,620,921. The bonds were purchased to yield 10% interest with the business model of collecting contractual cash flows that are solely payments of principal and interest. The entity does not elect the fair value option in measuring financial assets. The bonds mature on January 1, 2021, and pay interest annually on December 31. The effective interest method of amortization is used. What is the carrying amount of the investment on December 31, 2017?

2. On January 1, 2016, Villa Company purchased marketable equity securities to be held as trading securities for $5,000,000. The entity also paid commission, taxes, and other transaction costs amounting to $200,000. The securities had a market value of $5,500,000 on December 31, 2016. No securities were sold during 2016. What amount of unrealized gain or loss on these securities should be reported in the 2016 income statement?