On Jan 1 Year 1, when the annual market interest rate was 5%, 5-year 4% bonds with a face value of $50,000 were issued for proceeds of $47,812. Interest is payable on June 30 and Dec 31 each year. On Dec 31 Year 2, the amortized cost was $48,623. On June 30 Year 3 the discount amortized was

$431.

$278.

$216.

$555.