Silk Company issued $500,000 of 6%, 10-year bonds on one of its interest dates for $431,850 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. Interest is paid annually. What amount of discount (to the nearest dollar) should be amortized for the first interest period?

$14,089

$6,815

$9,096

$4,548

Presented here is a partial amortization schedule for Roseland Company who sold $200,000, five year 10% bonds on January 1, 2012 for $208,000 and uses annual straight-line amortization.

BOND AMORTIZATION SCHEDULE

Interest Period	Interest Paid	Interest Expense	Premium Amortization	Unamortized Premium	Bond Carrying Value
January 1, 2012				$8,000	$208,000
January 1, 2013	(i)	(ii)	(iii)	(iv)	(v)

Which of the following amounts should be shown in cell (ii)?

$21,600

$18,400

$20,800

$19,200