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On January 1, 2013, Shay issues $310,000 of 8%, 12-year bonds at a price of 96.50. Six years later, on January 1, 2019, Shay retires
On January 1, 2013, Shay issues $310,000 of 8%, 12-year bonds at a price of 96.50. Six years later, on January 1, 2019, Shay retires 20% of these bonds by buying them on the open market at 105.00. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount. 2. What is the amount of the discount on the bonds at January 1, 2013
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