On January 1, 2015, Bailey Company issued its 8% bonds in the face amount of $3,000,000, which

Question:

On January 1, 2015, Bailey Company issued its 8% bonds in the face amount of $3,000,000, which mature on January 1, 2025. The bonds were issued for $3,442,000 to yield 6%. Bailey uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. Compute the balance of the adjusted unamortized bond premium at December 31, 2016.