On January 1, Year 1, Weller Company issued bonds with a $220,000 face value, a stated rate of interest of 9.50%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 7.50%. Interest is paid annually on December 31.

Assuming Weller issued the bonds for $236,340, what is the carrying value of the bonds on the December 31, Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Multiple Choice

• $240,900

• $226,084

• $229,753

• $233,166

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Assuming Weller issued the bond for $236,340, what is the amount of interest expense that will be recognized during Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Multiple Choice

• $17,231

• $17,726

• $24,569

• $20,900