On January 1, 2017, when the market interest rate was 14%, Luba Corporation issued bonds in the face amount of $500,000 with interest at 12% payable semiannually. The bonds mature on December 31, 2026. Use (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.)

Required:

Calculate the bond discount at issuance. How much of the discount should be amortized by the effective interest method on July 1, 2017? (Do not round intermediate calculations. Round final answers to the nearest whole dollars.)