Answer:
$188,400
Explanation:
Data provided in the question:
Value Bonds issued = $4,000,000
Amount for which bonds issued = $3,756,000
Thus,
Bond discount at the time of issue = $4,000,000 - $3,756,000
= $244,000
Interest = 8%
Interest payable = Value Bonds issued × Interest
= $4,000,000 × 8%
= $320,000
Market rate of interest = 10%
Therefore,
Interest expense = $3,756,000 × 10%
= $375,600
Thus,
Discount amortized = Interest expense - Interest payable
= $375,600 - $320,000
= $55,600
Therefore,
At the end of the first year, Campanella should report unamortized bond discount
= Bond discount at the time of issue - Discount amortized
= $244,000 - $55,600
= $188,400
