On January 1, 2022, $3,000,000, 10-year, 10% bonds, were issued for $2,916,000.Interest is paid annually on January 1.If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the monthly amortization amount is

Question

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The discount on bonds payable is $84,000 ($3,000,000 - $2,916,000). 
The annual amortization amount using straight-line method is $8,400 ($84,000 ÷ 10 years). 
Monthly amortization amount is $700 ($8,400 ÷ 12 months).

On January 1, 2022, $3,000,000, 10-Year, 10% Bonds, Were Issued