Volker Inc. issued $3,036,000 of convertible 10-year bonds on July 1, 2014. The bonds provide for 10% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $46,800, which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 10 shares of Volker Inc.