Given the following:

Bonds issued: $100,000

Stated Rate: 10%

Term: 5 years

Issue and Sale date: 1/1/14

Issue Price: $80,000

Interest Paid: 12/31

Amoritzation Method: Straight Line

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The 12/31/14 Balance Sheet will include:

Answer - Discount on bonds $16,000

I'd like to know how that was calculated because I am not getting that answer.