On January 1, 2005, Wolf Corp. issued its 10% bonds in the face amount of $1,000,000, which mature on January 1, 2015.
The bonds were issued for $1,135,000 to yield 8%, resulting in bond premium of $135,000.
Wolf uses the interest method of amortizing bond premium. Interest is payable annually on December 31.
At December 31, 2005, Wolf's adjusted unamortized bond premium should be