On January 1, Year 1, Abarl Company issues $300,000, six-year 5% coupon rate bonds. Periodic payments are made semiannually on June 30 and December 31. The bonds are sold to yield a 6% effective interest rate. The company's fiscal year end is December 31. Debt issue costs were $20,000. 1. Right after Abari Company issues the bond, what is the carrying value of the bond? 2. Explain how Abari Company should account for the $20,000 debt issue costs and why. Make sure to think about any impacts throughout the life of the bond too. (max 5 sentences)