Amortization of Bond Discount and Premium

Carmon Trading and Distribution Company issued $30 million, 10% coupon bonds on 1 January 2014, due on 31 December 2018. The market interest rate on the issuance date was 12%, and the bonds pay interest on 30 June and 31 December of each year.

On January 1, 2015, Carmon issues another tranche of $30 mil- lion, 10% coupon bonds, due on 31 December 2019. However, the market interest rate had declined to 8% on the date of issuance. The bonds pay interest on 30 June and 31 December of each year.

At the end of 2016, the carrying value for the first tranche of bonds was $28,960,650 and $31,572,150 for the second tranche. At the end of 2017, the carrying value for the first tranche was $29,450,100 and $31,088,850 for the second tranche.

Required

How much interest expense did Carmon record in 2017 for the first tranche?

How much interest expense did Carmon record in 2017 for the second tranche?