Anyway, I am new to Bonsai and have a Mugo pine that is about 25years old (a friend gave it to me when he could not look after it anymore). I am youngish and this tree is the best in my inexperienced collection. It is a cascade and I have noticed that underneath the cracked bark on the top of the trunk you can see white, hard wood underneath. It looks as if this section of the trunk is dead underneath the bark

The tree looks health, nice and green with no dead needles. I looks as if there is nothing wrong with it but it has me very concerned. I have also noticed that there is a yellow fungus growing underneath the trunk where it is constantly in shade (as it is a cascade) and I don't know how to get rid of this or if it is the problem.
Hopefully someone can help out here as I have been searching on google on and off for several months and can not find an answer.
Regards,
Dave