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On January 1, 20x1, when the market interest rate was 14%, Luba Corporation issued 10-year...

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Accounting

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On January 1, 20x1, when the market interest rate was 14%, Luba Corporation issued 10-year bonds in the face amount of $500,000 with interest at 12% payable semiannually. The bonds mature on December 31, 20X9. Use the following links to the present value tables to calculate answers, PV of 1. PVAD of 1. and PVOA of 1 (Use the appropriate factor(s) from the tables provided.) Required: Calculate the bond discount at issuance. How much of the discount should be amortized by the effective interest method on July 1 20X1? (Do not round intermediate calculations. Round final answers to the nearest whole dollars.) Bond discount at issuance Discount amortization $ $ Amount 1,292 52,970

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