How do you determine the unamoritized amount in the following problem: On January 1 of Year 1, Drum Line Airways issued $2,700,000 of par value bonds for $2,470,000. The bonds pay interest semiannually on Jan 1 and July 1. The contract rate is 7% while the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortizzed at a rate of $7,667 every six months. The company's Dec. 31, Year 1 balance sheet should reflect total liabilities associated with the bond issuein the amount of?
Additional question - how do you determine the Unamortized amount in this problem?