Silcon Company issued $800,000 of 6%, 10-year bonds on one of its semi-annual interest dates for $690,960 to yield an effective annual rate of 8%. The effective interest method of amortization is to be used.
What amount of discount (to the nearest dollar) should be amortized for the first 6 months interest period?
a. $11,271
b. $5,452
c. $7,277
d. $3,638

Ditto what I said about making an attempt to do the work. If you have specific questions about how to do something like this, then ask a specific question. I won't just tell you an answer.

The answer is b.) 5452

800,000 @<hidden> 6% is 48,000 annually and 24, 000 semi-annually there are 20 periods (10 years x 2 ).

Cash 690,960 (given)
Discount of bond payable 109, 040
Bonds Payable 800,000


discount/# of periods 109,040/20 = 5,452

If you're going to do people's homework for them, at least know how to do it. I should have let it stand and let the person get the wrong answer - good lesson to be learned there.