Exercise 14-6 Your answer is correct. Vaughn Company sells 10% bonds having a maturity value of $2,550,000 for $2,366,166. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38, 548.) Schedule of Discount Amortization Straight-Line Method Cash Interest Discount Carrying Year Paid Expense Amortized Amount of Bonds 5 S Jan. 1, 2017 2,366,166 Jan. 1, 2018 255,000 291,767 36,767 2402,933 Jan. 1, 2019 255,000 291,767 36,767 2.439,700 Jan. 1, 2020 255,000 291,767 36,767 2 476,466 Jan. 1, 2021 255,000 291.767 36,767 2,513,233 Jan. 1, 2022 255,000 291.767 36,767 2,550,000