On $1$ January $2017,$ a company which prepares financial statement to $30$ June

each year buys $400,000$ of $5\%$ loan notes for $411,225.$ Interest will be received

half$-$yearly on $30$ June and $31$ December and the loan notes will be repaid at a

premium of $10\%$ on $31$ December $2020.$ The effective rate of interest is $3\mathrm{.}5\%$ per

half year and the company intends to hold this investment until maturity.

Calculate the amount of interest income that should be recognised in the

company$$s financial statements for each of the years to $30$ June $2017,2018,2019.$

Also calculate the amount at which the loan notes should be shown in the

statement of financial position at the end of each of these years