202. Silcon Company issued $1,000,000 of 6%, 10-year bonds on one of its interest dates for $863,700 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. Interest is paid annually. What amount of discount (to the nearest dollar) should be amortized for the first interest period?

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The Answer of 202. Silcon Company issued $1,000,000 of 6%, 10-year bonds on one of its interest dates for $863,700 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. Interest is paid annually. What amount of discount (to the nearest dollar) should be amortized for the first interest period?