On January 1, Year 1, Young Company issued bonds with a face value of $106,000, a stated rate of interest of 15 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 14 percent at the time the bonds were issued. The bonds sold for $111,529. Young used the effective interest rate method to amortize the bond premium.

Required a. Determine the amount of the premium on the day of the issue. b. Determine the amount of interest expense recognized on December 31, Year 1. (Round your answer to the nearest dollar amount.) c. Determine the carrying value of the bond liability on December 31, Year 1. (Round your answer to the nearest dollar amount.)