Southwest Corporation issued bonds with the following details:

Face value: $600,000

Interest: 9 percent per year payable each December 31

Terms: Bonds dated January 1, 2015, due five years from that date

The annual accounting period ends December 31. The bonds were issued at 104 on January 1, 2015, when the market interest rate was 8 percent. Assume the company uses effective-interest amortization and adjusts for any rounding errors when recording interest expense in the final year.

4-a. How much interest expense would be reported on the income statements for 2015 and 2016? (Round your answers to the nearest whole dollar.) 2015 49,200 $ 2016 49,200 Interest Expense $ 4-b. Compute the bond value which should be reported on the balance sheets at December 31, 2015 and 2016. (Round your intermediate calculations and final answers to the nearest whole dollar.) SOUTHWEST CORPORATION Balance Sheet (partial) 2015 2016 Long-term Liabilities Bonds Payable 600.000 $ 19,200 X 600,000 14,400 Premium on Bonds Payable Carrying Value 619,200 $ 614,400 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted