On January 1, 2020, Blossom Corp. issued $1,070,000 of five-year, zero-interest-bearing notes along with warrants to buy 1,000,000common shares at $20 per share. On January 1, 2020, Blossom had 9.3 million common shares outstanding and the market price was $19 per share. Blossom Corp. received $1,000,000 for the notes and warrants. If offered alone, on January 1, 2020, the notes would have been issued to yield 10% to the creditor. Assume that the company follows IFRS.

SCHEDULE FOR INTEREST AND DISCOUNT AMORTIZATION- EFFECTIVE INTEREST METHOD Cash Effective Discount Carrying Interest Interest Amortized Amount 664384 $ $ 0 $ 66438 $ 66438 730822 0 73082 73082 803904 0 80390 80390 884294 0 88429 88429 972723 0 97272 97272 1069995 $ 0 $ 405611 $ 405611