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What is the value of premium or discount on december

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Question 1: On January 1, 2020 ABC Co. issued 10% 3-year bonds with face value of $5,000,000 at 98. Additionally, ABC Co. paid a bond issue cost of $140,000. After consideration of bond issue costs to the initial measurement, the calculated effective interest rate is 12%. The interest is payable annually on December 31. ABC Co. uses the effective interest method in amortizing discount and issue cost. What is the value of premium or discount on December 31, 2020? (Round off present value factors up to four decimal places, in presenting your final answer round-up to the nearest dollar)

Reference no: EM132650658

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