Q9

On June 30,2021 , Sparkles issued $13 million of its 5% bonds for $9.8 million. The bonds were priced to yield 7%. The bonds are dated June 30,2021 . Interest is payable semiannually on December 31 and July 1 . If the effective interest method is used, by how much should the bond discount be reduced for the 6 months ended December 31, 2021? \begin{tabular}{l} $112,000 \\ $343,000 \\ \hline$455,000 \\ $18,000 \end{tabular} None of the options listed