230. On January 1, 2015, $3,000,000, 5-year, 10% bonds, were issued for $2,916,000. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the monthly amortization amount is

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The discount on bonds payable is $84,000 ($3,000,000 - $2,916,000). The total number of months for the bond term is 60 months (5 years x 12 months). Therefore, the monthly amortization amount is $1,400 ($84,000 ÷ 60 months = $1,400/month).