Appling Enterprises issued 8% bonds with a face amount of 400,000 on January 1, 2011. The bonds sold for 331,364 and mature in 2030 (20 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and Dec. 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2011 as determined by their market values in the over-the-counter market were: March 31 - 350,000, June 30 - 340,000, September 30 - 335,000 and Dec. 31 - 342,000.

1. By how much will Appling's earning be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statement?
2. By how much will Appling's earning be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statement?
3. By how much will Appling's earning be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statement?
4. By how much will Appling's earning be increased or decreased by the bonds (ignoring taxes) in the December 31 quarterly financial statement?