Jan. 1, 2011, a company issued the following bonds at Par Value $800,000, Stated Interest Rate 9% , Interest Dates: 6/30 and 12/31, and the Maturity Date Dec. 31, 2030 (20 years)

QUESTION 2 On January 1, Alpha Corporation issued and sold $200,000,7%, 10-year bond payable, and received proceeds of $198,000. Interest is paid semiannually. The company uses the straight line method to amortize the discount. What amount of discount should be amortized every period? a. S200 b.$2,000. c. None of the above. d. $100