Dar Company issurd bonds with a tace value of $180,000 on January 1 , Year 1 . The bonds had a stated interest rate of 7 percent and of cheyear term. Interest is paid in cash annually, beginning December 31, Year 1 . The bonds wore issued at 98 . The straight-line method is uted for amonization. Aequired ave Use a finucal statements model to demonstrate how (t) the January 1, Year 1, bond issue and (2) the December 31, Year 1. mecogntion of interest expense, including the amortitation of the discount and the cash payment, affect the company's financial stitements. b. Determine the caming value (face value less discount or plus premium) of the bond liability as of December 31, Year 1. e. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value foce vatue less discount or plus premium) of the bond liability as of December 31, Year 2. e. Determine the amount of interest expense reported on the Yeat 2 income statement. Complete this question by entering your answers in the tabs below. Use financal sutements modet to demonstrate how (1) the January 1 , Year 1 , bond issue and (2) the December 31 , Year 1 , recognition of interest Show less A Dar Compay asued bonds with a foce value of $180,000 on January t, Year 1 . The bonds had a stated interest rate of 7 percent anc a theycor hem therest is puid in cash amualy, beginning December 31 , Year 1 . The bonds were issued at 98 , The 5 traight-line reothod h uned for amortisation. Bectired a. Use a finarial stabements model to demonstrate how (t) the January 1, Year 1, bond issue and (2) the December 31, Year 1. meognisat herest expense, induding the amortization of the discount and the cash payment, affect the company's financial stateonents. b. Delemine the camping watue (face value less discount or plus premium) of the bond liability as of December 31, Year 1. c. Determibe the amount of interest expense reported on the Year 1 income statement. d. Determine the carring value (face value less discount or plus premilum) of the bond liability as of December 31, Year 2. a. Dotermine the amount of interest expense feported on the Year 2 income statement. Complete this question by entering your answers in the tabs below. b) Determine the campong value (face value less discount or plus premium) of the bond liability as of December 31, Year 1 . Determine the amount of interest expense reported on the Vear t income statement. Determine the carring value (face value less discount or plus premium) of the bond liability as of December 31 , Year 2. Determine the arfiount of interest expense reported on the Year 2 income statement