Grider Industries, Inc. issued $6,000,000 of 8% debentures on May 1, 2010 and received cash totaling $5,323,577. The bonds pay interest semi annually on May 1 and November 1. The maturity date on the bonds is November 1, 2018. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 10%.
Instructions:
Calculate the total dollar amount of discount or premium amortization during the first year (5/1/2010 through 4/30/2011) these bonds were outstanding. (Show computations and round to the nearest dollar.)