On January 1 of this year, Cunningham Corporation issued bonds with a face value of $213,000 and a coupon rate of 6 percent. The bonds mature in 15 years and pay interest annually every December 31. When the bonds were sold, the annual market rate of interest was 8 percent. The company uses the effective-interest amortization method. By December 31 of this year, the annual market rate of interest had increased to 10 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

1. What is the issuance price of the bonds on January 1?

2. What amount of interest expense is recorded on December 31 of this year?

42727 17723 28885 7-988 2211 71196 4237 3321 0-86544 988777665554444333 8 34032 5793 654433 7776 977879 693 791 4-876554 1-0. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 332321 19753 54444 5526266 3 786173 542936 753334 753197 55554443 1 38 2 3 7 7 3 0000000000000000000000 328 51853 865327 2 2 2 8887 5544 51127610 0000000000000000000000 % 5 1-00000 0. 0 0 0 0 0 0 0. 0. 0 0. 0 0 0. 000 965 156637 8754 38833737313385 45512 4493 0. 0 0 0 0 0 0 0 0 0 0 0 0 0. 0 0 0 0 0 0 0 0 01 742 08 9 96 4 1 60 285 26 9 4 5 3 1 94 8 5 5 9877655 221110 2 797 01-0. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 898 ri | 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 1234567890 123456789