On December 31, 19X1, when the market interest rate is 8 percent, an investor purchases \(\$ 500,000\) of Bali Corp. 6-year, 7.4-percent bonds at issuance. Determine the cost (present value) of this long-term bond investment, which the investor expects to hold to maturity. Journalize the purchase on December 31, 19X1, the first semiannual interest receipt on June 30, 19X2, and the year-end interest receipt on December 31,19X2. The investor uses the effective-interest amortization method. Prepare a schedule for amortizing the discount on bond investment through December 31, 19X2. If necessary, refer to Chapter 16 and its appendix.