On January 1, 2021, Splash City issues $320,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $293,938.

Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $295,765 on December 31, 2022. (Round Interest expense to nearest whole dollar.)