Southwest Corporation issued bonds with the following details:

Face Value: $640,000

Interest: 10 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 103 on January 1, 2015, when the market interest was 9 percent. Assume the company uses straight-line amortization and adjusts for any rounding errors when recording interest expense in the final year.

*Bond Price: $659,200

Date	General Journal	Debit	Credit
1/1/2015	Cash	659,200
	Premium on Bonds Payable		19,200
	Bonds Paybale		640,000
12/31/2015	Interest expense	60,160
	Premium on Bonds Payable	3,840
	Cash		64,000
12/31/2016	Interest Expense	60,160
	Premium on Bonds Payable	3,840
	Cash		64,000

What's the value on for 4-a and 4-b

4-a. How much interest expense would be reported on the income statements for 2015 and 2016? Interest Expense 4-b. Compute the bond value which should be reported on the balance sheets at December 31, 2015 and 2016. SOUTHWEST CORPORATION Balance Sheet (partial) 2016 Long-term Liabilities Bonds Payable Carrying Value