Question $7$

This information is used in two questions. Cloudy Corp. issued $10\%$ bonds, dated January $1,$ with a face amount of $$150$ million on January $1,2024.$ The bonds mature in $15$ years. The market rate of interest for similar

issues was $12\%.$ Interest is paid semiannually on June $30$ and December $31.$ Assume that Cloudy uses the effective interest method to amortize discount or premium. The amount of discount amortization recorded with

the June $30,2024$ interest payment would be:

$$261,164$

$$688,243$

$$7,761,164$

$$8,188,243$

None of the above.