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On January 1 of Year 1, Congo Express Airways issued $5,400,000 of 7%,...

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Accounting

On January 1 of Year 1, Congo Express Airways issued $5,400,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $4,952,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $14,000 every 6 months. The life of these bonds is:

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