1. On January 1, 2022, C Corp issued 6% $500,000, 20-year bonds at 96. Debt issue costs were $4000. Interest is payable semiannually on June 30 and December 31. C Corp uses straight line method both to determine interest expense and to amortize debt issue costs. The amount of interest expense for year of 2022 is:

2. A Corp issued $600,000 of 4%, 10-year bonds on January 1, 2022, for $510,738. This price provided a yield of 6% on the bonds. Interest is payable semiannually on June 30 and December 31. What would be the total interest expense recognized for the bond issue over its full term?

3. Mark Financial buys and sells securities which it classifies as available for sale. On December 31, 2021, a bond had an amortized cost of $120,000 and fair value of $123,000. Differences between cost and market values are considered to be temporary. The change in market value was properly accounted for at December 31, 2021. On December 31, 2022, the bond had an amortized cost of $120,000 and the bond’s fair value is now $127,000. The amount included in 2022 other comprehensive income as a result of this investment would be: