On May 1, 2020, Providex Industries Ltd. issued $ 2,000,000, 10% bonds and received cash proceeds of $ 2,243,313. The bonds pay interest semi-annually on May 1 and November 1. The maturity date on these bonds is November 1, 2028. Providex uses the effective-interest method of amortizing bond discounts and premiums. The bonds were sold to yield an effective-interest rate of 8%.
Instructions
Calculate the total dollar amount of discount or premium amortization during the first year that these bonds were outstanding. Show calculations and round values to the nearest dollar.

Question

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The Answer of On May 1, 2020, Providex Industries Ltd. issued $ 2,000,000, 10% bonds and received cash proceeds of $ 2,243,313. The bonds pay interest semi-annually on May 1 and November 1. The maturity date on these bonds is November 1, 2028. Providex uses the effective-interest method of amortizing bond discounts and premiums. The bonds were sold to yield an effective-interest rate of 8%.
Instructions
Calculate the total dollar amount of discount or premium amortization during the first year that these bonds were outstanding. Show calculations and round values to the nearest dollar.