The answer that is given here cannot possibly be correct because using the effective interest method and the work shown, going into $2018$ a premium of $$74$ would remain, but this journal entry is amortizing $$244\mathrm{.}08.$ If this bond was amortized over the $10$ year life using the straight$-$line method, the yearly amortization would be $$30$ per year. How then, would the effective interest method amortize $75\%(226/300)$ of the premium in the first year, and then suggest that we amortize another $81\%(244/300)$ of the original premium the second year, especially when only $25\%$ of the original premium remains.