For problems #16 - 17, use the following information: A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703, 108. 16. Using effective interest amortization, how much interest expense will be recognized in 2017? Using effective interest amortization, what will the carrying value of the bonds be on the December 31, 2017 balance sheet? 18. ABC Corporation retires its $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $481,250. Indicate if the company recorded a Gain or Loss and How Much on the date of redemption. (Must show on answer sheet if it's a Gain or Loss and the Amount)