Smithsonian Co. purchased a \$100,000 par value, 10% bond on January 1, 2015. The maturity date of the bond is January 1, 2018. The company purchased the bond for a discount by paying \$95,196. Interest on the bond will be paid on July 1 and January 1 every year. The company had the intention and the ability to hold the investment to the maturity date. The company used the straight-line method to amortize any discount or premium.
(I): On July 1, 2015, what is the recognized interest revenue (in dollars to the second decimal place)?
(II): On July 1, 2015, what is the amount of bond investment reported on the balance sheet (in dollars to the second decimal place)?