Required information

[The following information applies to the questions displayed below.] On January 1, 2019, Drennen Inc. issued $2.6 million face amount of 6-year, 14% stated rate bonds when market interest rates were 12%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2024. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.)

b-1. Assume instead that the proceeds were $2,539,000. Use the horizontal model to record the payment of semiannual interest and the related discount amortization on June 30, 2019, assuming that the discount of $61,000 is amortized on a straight-line basis. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)