Required information

On January 1, 2017, Shay issues $420,000 of 9%, 12-year bonds at a price of 97.25. Six years later, on January 1, 2023, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2022, the day before the purchase. The straight-line method is used to amortize any bond discount.

1. How much does the company receive when it issues the bonds on January 1, 2017?

Cash proceeds from sale of bonds at issuance