The amount of bond premium amortization for Year 2 is: Multiple Choice $32,497. $35,422. $38,895. $50,000

The Ness Company sells $5,000,000 of five-year, 10% bonds at the start of the year. The bonds have an effective yield of 9%. Present value factors are below: $1 $1 $1 $1 $1 factor factor factor factor factor I 2 3 4 5 year years years years years 0.90909 0.82645 0.75131 0.68301 0.62092 0.91743 0.84168 0.77218 0.70843 0.64993 The amount of bond premium amortization for Year 2 is: Multiple Choice O O O O $32,497. $35,422. $38,895. $50,000.