On January 1,2014,$50,000 of 20-year,6 percent debentures were issued for $56,275.20.Interest payment dates on the bonds are January 1 and July 1.The amount of premium to be amortized on July 1,2014,when using the straight-line method is

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The total premium on the bonds is $6,275.20 ($56,275.20 issue price - $50,000 face value). 
Using the straight-line method, we can divide the total premium by the number of interest payment periods over the life of the bond. In this case, there are 40 interest periods (20 years x 2 payments per year). 
$6,275.20 / 40 = $156.88 
Therefore, the amount of premium to be amortized on July 1, 2014 is $156.88.

On January 1,2014,$50,000 of 20-Year,6 Percent Debentures Were Issued for $56,275.20.Interest