On January 1, 2019 Drennen Inc. issued 2.6 million face amount of 6-year 10% stated rate bonds when market interest rates were 8%. The bonds pay semiannual interest each June 30 and Decembr 31 and mature on December 31, 2024. Assume instead that the proceeds were $2535000. Use the horizontal model to record the payment of semiannual interest and the related discount amortization on June 30, 2019, assuming that discount of 65000 is amortized on a straight-line basis. Indicate the financial statement effect.