Benson Industries Ltd issued $2,000,000 of 8% debentures on 1 May 2008 and received cash totaling $1,774,526. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is 1 November 2011. The firm uses the effective interest method of amortising discounts and premiums. The bonds were sold to yield an effective interest rate of 10%.