Question Content AreaExhibit $14-8$

Piazzi, Inc. sold $$400,000$ of its $9\%,$ five$-$year bonds dated January $1,2020,$ on May $1,2020,$ for $$393,000$ plus accrued interest. Interest is paid on January $1$ and July $1$ and straight$-$line amortization is used.

Refer to Exhibit $14-8.$ The balance of Discount on Bonds Payable after the December $31,2020,$ adjusting entry has been posted would be

$$6,000$

$$7,000$

$$8,400$

$$5,600$