P14-4 (LO1 ,2,5) (Issuance and Redemption of Bonds; Income Statement Presentation) Holiday Company issued its 25-year mortgage bonds in the principal amount of S3,000,000 on January 2, 2003, at a discount of $150,000, which it proceeded to amortize by charges to expense over the life of the issue on a straight-line basis. The indenture securing the issue provided