Gary King Company sells 8% bonds having a maturity value of $3,440,000 for $3,179,190.00. The bonds are dated January 1, 2025, and mature January 1, 2030. Interest is payable annually on January 1. 1. Determine the effective-interest rate.

2. Set up a schedule of interest expense and discount amortization under the effective-interest method.

Schedule of Discount Amortization Effective-Interest Method