Amortization of discount or premium.

Grider Industries, Inc. issued 6,000,000 of 8% debentures on May 1, 2021 and received cash totaling 5,323,577. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is November 1, 2024. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%.

Instructions

Calculate the total dollar amount of discount or premium amortization during the first year (5/1/21 through 4/30/22) these bonds were outstanding. (Show computations and round to the nearest dollar.)