Cramer Company sold 5 year, 8% bonds on October 1, 2006. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report on its December 31, 2006 income statement (assume straight line amortization)?
- answer was $1900 but I don't get how

my work: I was confused on how I should do the straight line amortization, should I start from after October? Also, I know bonds were sold at premium. But that's about it.