Headlands Ltd. sells $6.40 million of 9% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The bonds due date is June 1, 2024. The bonds yield 8%. On October 1, 2021, Headlands buys back $1.28 million worth of bonds for $1.86 million, including accrued interest.

use the effective interest method for discount and premium amortization and prepare any necessary amortization tables. (Hint: Refer to Chapter 3 for tips on calculating.) (Round answers to 0 decimal places, e.g. 5,275.)