During Year 1 and Year 2, Agatha Corporation completed the following transactions relating to its bond issue. The corporation's fiscal year is the calendar year. Year 1 January 1 Issued $360,600 of 10 -year, 7 percent bonds for $354,600. The annua1 cash payment for interest is due on December 31. Decenber 31 Recognized interest expense, Including the straight-1ine amortization of the discount, and made the cash payment for interest. Decenber 31 Closed the interest expense account. Year 2 Decenber 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment Decenber31 Closed the interest expense account. Required 0-1. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? 0-2. If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have received? b. Prepare the liabilities section of the balance sheet at December 31, Year 1 and Year 2. c. Determine the amount of interest expense that will be reported on the income statements for Year 1 and Year 2. d. Determine the amount of interest that will be paid in cash to the bondholders in Year 1 and Year 2 . Complete this question by entering your answers in the tabs below. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? Complete this question by entering your answers in the tabs below. If Agatha had sold the bonds at their face amount, what amount of cash would Agatha have recelved Complete this question by entering your answers in the tabs below. Prepare the liabilities section of the balance sheet at December 31, Year 1 and Year 2. Note: Amounts to be deducted should be indicated with minus sign. Complete this question by entering your answers in the tabs below. Determine the amount of interest expense that will be reported on the income statements for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Determine the amount of interest expense that will be reported on the income statements for Year 1 and Year 2. Complete this question by entering your answers in the tabs below. Prepare the liabilities section of the balance sheet at December 31, Year 1 and Year 2. Note: Amounts to be deducted should be indicated with minus sign