224. A corporation issues ¥1,000,000,000, 10%, 5-year bonds on January 1, 2014 for ¥958,000,000. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight- line method of amortization of bond discount, the amount of bond interest expense to be recognized on July 1, 2014 is

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The bond discount is the difference between the face value of the bond and the price at which it is issued, which is ¥42,000,000 in this case (¥1,000,000,000 – ¥958,000,000). Since the bond is to be amortized over 10 semiannual periods, the annual amortization will be ¥42,000,000/10 = ¥4,200,000. 
For the first semiannual period, the bond interest expense would be the sum of the half-yearly interest payment (¥50,000,000) and half of the annual amortization (¥2,100,000). Thus, the bond interest expense to be recognized on July 1, 2014, would be ¥50,000,000 + ¥2,100,000 = ¥54,200,000.