The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period:

Bond carrying amount at beginning of period $2,125,000 Interest paid during period 160,000 Interest expense allocable to the period 148,750

(a) Were the bonds issued at a discount or at a premium?

(b) What is the unamortized amount of the discount or premium account at the beginning of the period? (c)

What account was debited to amortize the discount or premium?

AppendixLO1