On January 1 2018 Danny Company issued $350,000 of 10%, five year bonds payable at 102. Danny has extra cash and wishes to retire the bonds payable on January 1 2019, immediately after making the second semi- annual interest payment. Interest payments are June 30 and Dec.31. Danny uses the straight line method to amortize the discount or premium. to retire the bonds, Danny company pays the maret price of 98.

a) calculate the interest payments and premium amortization for the semi- annual interest.

b) what is Danny company's carrying amount of the bonds payable on the retirement date?