Marvin Corporation Issued $500,000 of 8%, 10-Year Bonds for 98

Marvin Corporation issued $500,000 of 8%, 10-year bonds for 98 on January 1, Year 1. Interest is payable annually on December 31. The company uses the straight-line method to amortize bond discounts and premiums.Required:a)Prepare the liabilities section of the balance sheet at December 31, Year 1.b)Determine the amount of interest expense reported on the Year 1 income statement.c)Prepare the operating activities section of the Year 1 statement of cash flows.