The following journal entry was made by your predecessor to record the annual payment on a 5%, 10-year installment note.

Oct.10	interest expense	203264
	notes payable	499298
	cash		702562

Use the infomation provided, compute the following amounts.

1. What was the carrying amount (book value) of the installment note before the payment on October 1?

2. What portion of next years payment will be interest? (Round the amount to the nearest dollar.)