Kenny Inc. recently issued $35 million of 12% coupon bonds, payable semiannually, which mature in 10 years. The bonds were sold for $33,071,761 to yield a 13% annual rate. Use the table below to show the amortization of the discount, interest expense, and the carrying amount of the bonds in period 1. (Round your answers to the nearest dollar.)

	Interest Expense	Interest Paid	Discount Amortization	Bond payable, Net
0
1
2

Table PV-1 Present Values of $1 Due in n Periods Periods 2% 3% 4% 5% 6% 8% 10%12% 1 .980.971].962.9521.943.926.909.893 2 .961].943.9251.9071.8901.8570.826].797| 3 .942.915.889.864.8401.794.7511.712 1.924.889.855.823.792.735.683.636 5 .906.863.822.7841.7471.681.621.567 6 1.888.838.790.746).705.630.564.507 7 .871.813].760.711].665].583.513].452| 8 1.854.789.731].6771.627.5401.467].404 9 1.837.766).703.645|.592.5001.424.361 10 .820.744.676.6141.558.463.386.322| 20 .673.5541.456.377.3121.215.149.104 Table PV-2 Present Values of $1 to Be Received Periodically for n Periods Periods 2% 3% 4% 5% 6% 8% 10% 12% 1 9 801 9711 962 0.952 0.9430.926|0.909|0.893 2 1.942 1.914 1.886 1.859 1.833 1.783 1.736 1.690 3 2.884 2.829 2.775 2.723 2.6732.5772.487/2.402 4 3.808) 3.7171 3.630 3.546| 3.465|3.312|3.170[3.037 5 4.714 4.580 4.452 4.329 4.2123.993|3.791 3.605 6 5.601 5.417) 5.242 5.076| 4.917 4.623|4.355 4.111 7 6 .472) 6.230 6.002 5.786 5.582|5.206|4.868|4.564 8 7.326 7.020 6.733 6.463 6.210 5.747 5.335 4.968 9 8.1627.786 7.435 7.108 6.802|6.247|5.759 5.328| 108.983 8.530 8.111 7.722 7.360 6.71016.145 5.650 20 (16.351 14.878|13.590|12.462 11.47019.818 8.514 7.469