Amortization of discount
On May 1, 2020, Salinas Industries Ltd. issued $ 2,000,000, 8% bonds and received cash proceeds of $ 1,774,519. The bonds pay interest semi-annually on May 1 and November 1. The maturity date on these bonds is November 1, 2028. Salinas uses the effective-interest method of amortizing bond discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%.
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 Amortization of discount
On May 1, 2020, Salinas Industries Ltd. issued $ 2,000,000, 8% bonds and received cash proceeds of $ 1,774,519. The bonds pay interest semi-annually on May 1 and November 1. The maturity date on these bonds is November 1, 2028. Salinas uses the effective-interest method of amortizing bond discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%.
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.

Amortization of Discount On May 1, 2020, Salinas Industries Ltd. Issued $ 2,000,000