On January $1,$ Year $1,$ Kelly Enterprises issued bonds with a face value of $$422,000,$ a stated rate of interest of $5$ percent, and a $6-$year term to maturity. Interest is payable in cash on December $31$ of each year. The effective rate of interest was $6$ percent at the time the bonds were issued. The bonds sold for $$401,250.$ Kelly used the effective interest rate method to amortize the bond discount.

Required:

Determine the amount of the discount on the day of issue.

Determine the amount of interest expense recognized on December $31,$ Year $1$

Note: Round your answer to the nearest dollar amount.

Determine the carrying value of the bond liability on December $31,$ Year $1.$

Note: Do not round the intermediate calculations and round your answer to the nearest dollar amount.