On January 1, Year 1, a company issues $400,000 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 $367,422. Exercise 9-16B Part 1 Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, Year 2. (Round Interest expense to nearest whole dollar.) Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/Year 1 06/30/Year 1 12/31/Year 1 06/30/Year 2 12/31/Year 2