Billings Corp. issued $20,000,000 of five-year, 11% bonds at an effective interst rate of 14%, with interst payable semiannually, receiving cash of $17,892,938
1. Determine the amount of discount to be amortized for the first semiannual interest payment period, using the interest method.
2. Determine the amount of discount to be amortized for the first semiannual interest payment period, using the interst method.
3. Determine the amount of bond interest expense for the first year.