On January 1, Year 1 Residence Company issued bonds with a exist50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term, a stated rate of interest of 7%, and an effective rate of interest of 6.633%. Assuming Residence uses the effective interest rate method, the carrying value of the bond liability on January 1, Year 1 is (round any necessary computations to the nearest whole dollar) exist46, 355. exist50,000. exist52,000. exist46, 500. On January 1, Year 1 Residence Company issued bonds with a exist50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term, a stated rate of interest of 7%, and an effective rate of interest of 6.633%. Assuming Residence uses the effective interest rate method, the amount of interest expense recognized on the December 31, Year 1 income statement is (round any necessary computations to the nearest whole dollar) exist3, 499. exist3, 500. exist3, 449, exist3, 600